Kraken has Bitcoin Vault, a new product within its Kraken Earn suite that allows customers to earn BTC-denominated rewards on their Bitcoin holdings without selling the asset. The offering targets long-term holders who want passive yield tied to Bitcoin’s price exposure rather than a fiat-denominated return.

The product carries a variable rate of up to 2.5% APY, paid in Bitcoin. Under the hood, customer assets are routed through DeFi infrastructure built by Veda, with strategy design and risk curation handled by Sentora. 

Those firms allocate capital across established onchain lending protocols including Aave, Morpho, and Tydro — platforms that have processed billions in DeFi volume. The exchange does not control these third-party protocols, and the company disclosed that users face technological, market, and operational risks, including the possibility of losing some or all assets.

The launch reflects a broader shift in how crypto exchanges compete for customers. Bitcoin ownership has long been characterized by a buy-and-hold mentality, but exchanges are now racing to offer yield products that give holders a reason to keep assets on-platform rather than in cold storage. 

foray into onchain products follows a period of product expansion ahead of an initial public offering the company is targeting for later in 2026.

Kraken’s Bitcoin Vault details

Kraken drew on its own data to justify the product. Its USDC Vaults offering, launched in January 2026, crossed $240 million in assets without the use of incentive programs — a benchmark the company cited as evidence of organic demand for structured yield products. Bitcoin Vault is designed to replicate that model for BTC holders, a segment that represents the largest share of the customer base.

“Many Bitcoin holders on Kraken have made it clear they want simple ways to earn on the Bitcoin they already plan to hold,” said John Zettler, Director of Product, Kraken Earn & Trade. “Bitcoin Vault is built for that mindset.”

The product is accessible through Kraken’s web interface, its Pro platform, the mobile app, and the Krak app. It is available in all Kraken operating jurisdictions except the United Kingdom, the United Arab Emirates, and Australia. 

Setup requires seconds from within an existing account, a design choice aimed at removing friction for users without DeFi experience.

Bitcoin Vault is classified as an unregulated product provided by Payward Wallet, LLC, a subsidiary of Kraken. 

The product puts the exchange at the intersection of centralized exchange convenience and decentralized finance yield — a space where competitors including Coinbase and Binance have also been building, as crypto platforms work to broaden revenue streams beyond trading fees.

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