Crypto exchange Kraken has launched a new Bitcoin staking service enabled by its integration with Babylon, a Bitcoin-native staking protocol.

Users can lock their BTC in a custodial vault on the Bitcoin blockchain, which is then delegated via Babylon to secure proof-of-stake (PoS) networks. They can also unstake their BTC at any time, but will be subject to a seven-day unbonding period before funds are returned.

This story is an excerpt from the Unchained Daily newsletter.

Staking rewards, however, will be paid in Babylon’s native token BABY, rather than in BTC.

Over 57,000 BTC, worth more than $5.6 billion, have already been staked on Babylon’s Genesis mainnet since its April 2025 launch.