Kraken unveils Bitcoin Vault, expanding yield push for BTC holders
Kraken has launched Bitcoin Vault, a new earn product within Kraken Earn that allows users to generate bitcoin-denominated rewards via DeFi strategies while maintaining full exposure to BTC's price. The product is powered by DeFi infrastructure provider Veda and operated by Sentora, with assets allocated across protocols including Aave, Morpho and Tydro. It targets long-term holders seeking passive income without selling their bitcoin. The vault abstracts DeFi operational complexity, letting users earn directly through their Kraken accounts. Announced on May 27, 2026, the launch follows Kraken's broader push into onchain financial products as exchanges compete for yield-seeking users. Kraken noted its DeFi Earn offering has surpassed $240 million in AUM since January, driven by organic adoption. Bitcoin Vault is available in eligible jurisdictions through Kraken Earn. The product comes amid a period where centralized crypto lending collapsed in 2022, prompting a shift toward transparent onchain infrastructure and overcollateralized lending markets. Kraken aims to attract both existing customers and external BTC holders looking to consolidate assets while earning yield.
Key facts
- Kraken launches Bitcoin Vault for BTC yield via DeFi strategies.
- Users earn bitcoin-denominated rewards without selling BTC.
- Powered by Veda and Sentora, using Aave, Morpho, Tydro protocols.
- DeFi Earn AUM surpassed $240M since January 2026.
- Available in eligible jurisdictions through Kraken Earn.