Kraken has rolled out Bitcoin Vault, a product that allows bitcoin holders to earn yield on their BTC without selling or actively managing assets across decentralized finance protocols. Rewards are paid in bitcoin, and users maintain full exposure to BTC’s price movements.
Built for Long-Term Holders
Announced Wednesday, the vault is part of Kraken Earn and targets users who plan to keep their bitcoin regardless of market cycles. John Zettler, GM of Payward Services and head of Kraken Earn Products, said: “Many bitcoin holders on Kraken have made it clear they want simple, safe ways to earn on the bitcoin they already plan to hold. Bitcoin Vault is built for that mindset.”
Powered by Veda and Sentora
The product is supported by DeFi infrastructure provider Veda and operated by Sentora. Customer assets are deployed across several established onchain lending and yield protocols, including Aave, Morpho, and Tydro. This structure abstracts away the operational complexity of manual DeFi participation — users do not need to switch between protocols, manage gas fees, or rebalance positions.
In crypto, vaults are pooled products that automatically execute yield strategies, often with built-in risk management and rebalancing. Demand for such passive income vehicles has grown steadily among long-term holders of bitcoin and ether.
Expanding Kraken’s Onchain Yield Suite
Bitcoin Vault marks the latest expansion of Kraken’s onchain financial product lineup. After centralized lending platforms collapsed in 2022, exchanges and DeFi protocols have repositioned yield products around transparent infrastructure and overcollateralized lending. Kraken said the vault is designed both for existing customers and for BTC holders outside the platform who might want to consolidate assets at a major exchange while earning extra yield.
Kraken’s broader DeFi Earn offering, launched in January, has surpassed $240 million in assets under management — growth the firm attributes to organic adoption rather than token incentives.
Bitcoin Vault is now available in eligible jurisdictions through Kraken Earn.