Kraken launches Bitcoin Vault for passive BTC yield
6.7 Investments Kraken’s Bitcoin Vault lets users earn up to 2.5% BTC yield via DeFi, with auto-compounding rewards and simple, integrated access—no need to manage complex strategies or move funds between protocols.
Kraken has introduced Bitcoin Vault, a new addition to its Kraken Earn suite, tailored for long-term Bitcoin holders seeking passive yield. This product enables users to earn BTC-denominated rewards through DeFi strategies, all while maintaining exposure to Bitcoin’s price movements. Bitcoin Vault is powered by Veda and operated by Sentora, allocating assets across protocols such as Aave, Morpho, and Tydro. Users can earn up to 2.5% in BTC rewards, with the process fully integrated into Kraken and Kraken Pro for seamless access. Deposited BTC is wrapped into kBTC on Kraken’s Ink network and used as collateral for overcollateralized loans, with stablecoins deployed into DeFi strategies. Earnings are paid and auto-compounded in Bitcoin, with a minimum deposit of just 0.00006 BTC. The solution simplifies DeFi participation by offering a custodial wrapper, eliminating the need for users to manage complex strategies or move funds between protocols. Kraken handles protocol selection, risk management, and on-chain interactions, making passive BTC yield generation accessible and straightforward.
