Kraken launches Bitcoin Vault offering BTC rewards for long-term cryptocurrency holders. Bitcoin Vault uses Aave and Morpho protocols to generate passive Bitcoin yields. Kraken excludes Unite
Kraken has introduced Bitcoin Vault, a new earning product allowing users to receive up to 2.5% annual rewards paid in Bitcoin. The feature targets long-term Bitcoin holders seeking passive income while maintaining exposure to BTC price movements. The company launched the product through Kraken Earn across its web platforms, Kraken Pro, and the Krak application. According to Kraken, Bitcoin Vault removes much of the complexity associated with decentralized finance earning strategies.
“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. It gives customers a way to earn rewards on their Bitcoin through an experience that is easy to access and grounded in the trust Kraken has built over time.”
Additionally, Kraken confirmed that Veda powers the infrastructure supporting Bitcoin Vault, while Sentora manages strategy design and risk oversight. The platform allocates customer assets across decentralized finance protocols, including Aave, Morpho, and Tydro. Kraken explained that users can activate Bitcoin Vault directly from existing accounts without requiring separate wallets or advanced technical knowledge. Consequently, the exchange expects the feature to appeal to both experienced Bitcoin investors and newer cryptocurrency users.
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Kraken stated that Bitcoin investors increasingly seek ways to generate returns from inactive holdings without actively trading assets. Besides preserving Bitcoin ownership, Bitcoin Vault offers customers a simplified path toward earning additional BTC rewards. The exchange also referenced earlier growth from its USDC Vaults product. According to Kraken, the service surpassed $240 million in assets since launching earlier this year without incentive campaigns or promotional rewards.
Moreover, Kraken believes simplified earning products could attract Bitcoin holders currently storing assets outside centralized exchanges. The company stated that many investors prefer easier earning solutions instead of directly interacting with decentralized finance applications. Competition among crypto exchanges offering Bitcoin yield products has continued growing during recent months. However, Kraken positioned Bitcoin Vault as a straightforward earning tool rather than a high-risk trading strategy.
Kraken confirmed that Bitcoin Vault currently remains unavailable in the United Kingdom, United Arab Emirates, and Australia. However, customers in other supported regions can access the service immediately through Kraken Earn. Kraken’s Bitcoin Vault launch highlights growing demand for simpler Bitcoin earning products among long-term investors. The exchange expects passive BTC reward services to remain an important part of cryptocurrency platform competition.
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