Kraken Launches Bitcoin Vault, Offering Yield on BTC Holdings

Kraken has launched Bitcoin Vault, a product within its Kraken Earn suite that allows users to earn BTC-denominated rewards (up to 2.5% APY) on their Bitcoin holdings via DeFi infrastructure. The product leverages partnerships with Veda and Sentora to allocate funds across protocols like Aave and Morpho, targeting long-term holders seeking passive yield. It is available in most jurisdictions except the UK, UAE, and Australia, and reflects Kraken's strategy to expand yield products ahead of its planned 2026 IPO.