Why Kraken Bitcoin Staking Was Never Possible—Until Babylon Came

For the first time ever, you can now stake Bitcoin directly through Kraken—without wrapping, bridging, or using third-party lending platforms, according to Wu Blockchain latest post. This is a massive shift for the crypto world, as the world’s largest cryptocurrency is finally becoming a productive asset thanks to a partnership between Kraken and Babylon Protocol.

Source: Wu Blockchain

If you've ever searched for a safe and simple way to earn passive income, then Kraken Bitcoin staking may be the answer.

Native Bitcoin Staking? It Wasn’t Possible—Until Now

This currency was never built to support staking. Unlike Ethereum or other Proof-of-Stake (PoS) chains, it lacks smart contracts, native delegation features, or slashing systems.

Because of that, traditional crypto staking platforms didn’t support BTC in a truly decentralized way. Most staking options involved:

• Wrapping your $BTC into another token (like wBTC)

• Bridging it to other chains

• Trusting centralized lenders that often lacked transparency

Until now, holding this cryptocurrency meant letting your investment sit idle, hoping it gains value over time.

Babylon Protocol Makes This Yielding a Reality

The game-changer is Babylon Protocol, which enables native earning without altering the original BTC.

Here’s how it works:

• Your token is time-locked, not transferred or converted.

• It helps secure Babylon-supported PoS blockchains.

• You earn up to 1% APY in Babylon’s native token, $BABY.

This innovation finally allows investors and users to earn passive income while keeping full control over the tokens.

Kraken Launches Bitcoin Staking—What You Need to Know

Now that Babylon has laid the groundwork, this exchange has become the first major platform to offer this new form of bonding.

Source: Kraken Exchange

Here are the highlights of crypto staking on Kraken as per the official team announcement on X:

• Up to 1% annual yield, paid in $BABY tokens

• No minimum or maximum limit — you can stake any amount of cryptocurrnecy

• Weekly payouts directly to your exchange account

• Available to users in the U.S. (excluding a few states), UK, Australia, and UAE

If you’ve been looking to stake this coin on Kraken one of the top crypto exchanges , now is the perfect time to start.

Analyst Take: Why This Is a Big Moment for Investors?

A leading crypto analyst, Arjun Sethi, recently said:

“For years, people assumed this token bonding couldn’t be done—not because it was a bad idea, but because the tools weren’t there. That’s finally changing.”

Source: X

He highlighted that over $1 trillion in BTC is currently sitting idle. This new opportunity lets holders turn their assets into yield-generating tools, securely and transparently.

Bitcoin Price Reaction and What’s Next

According to CoinMarketCap at the time of writing:

• BTC Price Today: $106,117.43 (up 1.38%)

• 24-hour Trading Volume: $40.15 billion (down 8.80%)

While we also saw a small decrease in volume, analysts believe that this move towards BTC earning in 2025 could exist as value-add long-term.

My take as a crypto writer that watches market trends, is that as more and more holders want to earn some yield without selling their assets, platforms like this may play an important role in their investment plans going forward.

Conclusion: Bitcoin Just Became More Than Digital Gold— It Pays

For over a decade, it was seen as a static store of value. Now, thanks to Kraken Bitcoin staking, it has become an active, income-generating asset.

If you’ve been searching for a reliable way to earn with your BTC—without losing custody, wrapping, or trusting risky platforms—this top marketplace and Babylon just gave you the perfect solution.