Crypto Exchange Kraken has launched Bitcoin
To put itself through a new integration with Babylon, which is decentralized on BTC.
Babylon is a Bitcoin-native protocol that allows BTC to secure proof-of-stake (pos) network without leaving blockchain.
The service allows the Kraken users to bet their Bitcoin directly and lock it in a custody vault on the native chain. The stacked Bitcoin is then delegated to POS network via Babylon, and rewards are paid in the baby, the token to Babylon Genesis, a Bitcoin-secured layer 1, Kraken said.
Bitcoin has historically been used as a value of value and an exchange medium. The emergence of new security sharing protocols has made BTC enter into a third native use case, Bitcoin Defi, for the world’s largest cryptocurrency.
The Bitcoin network “develops into a broader decentralized financing ecosystem with the emergence of Bitcoin Defi,” Binance Research said in a March report.
Only ~ 0.8% of the Bitcoin supply is currently used in DEFI, and this presents a large “untapped option,” the report says. Binance, the competing Crypto exchange of Kraken, also offers a Bitcoin stake opportunity on its platform through Babylon.
“With this launch, clients can earn a return on their BTC, while also allowing new POS blockchains to take advantage of the financial weight of Bitcoin to validate transactions and strengthen the security of their network,” Kraken’s global leader of consumer, Mark Greenberg, said in release.
The mechanism is fully on-chain with efforts guided by Bitcoin scripts and cryptographic protective measures to deter malicious behavior.
Users can at any time unstore with about a 7-day unbound period.
Crypto Exchange first introduced the depot sting in 2019. The Bitcoin stacking feature is now available across all the Kraken platforms.
Read more: Kraken reveals White-Glove Prime Brokerage Service for Crypto Institutions
