The Kraken crypto exchange has introduced a new non-custodial product that allows Bitcoin holders to earn a 2.5% annual yield. This service expands the company's lineup of yield-generating projects at a time when demand for reward-bearing tools among crypto investors is rising. This was reported by Cointelegraph.com reports .
This project was launched with the support of infrastructure provider Veda. According to Veda representatives, the new solution aims to eliminate difficulties associated with wrapping Bitcoin assets, transferring them to other networks, or complex crypto-wallet management. John Zettler, Director of Kraken Earn, noted that many users wanted an easy way to earn yield on their existing Bitcoin holdings.
Unlike blockchains such as Ethereum and Solana, yield-generating mechanisms on the Bitcoin network have been limited. Kraken solves this problem by converting Bitcoin assets into kBTC tokens. The Sentora platform then deploys these funds into lending protocols such as Aave, Morpho, and Tydro. Since the system is non-custodial, only the users themselves have the right to control their funds.
According to reports, 10 hours after the service launch, more than $30 million in Bitcoin was deposited from 4,000 wallets. For comparison, the stablecoin products Kraken launched in January have already attracted over $245 million in capital and generated $2.2 million in revenue.
Read “Zamin” on Telegram!
