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Kraken Earn BTC Vault Draws $30 Million in Bitcoin Within 10 Hours

Kraken Earn BTC Vault Draws $30 Million in Bitcoin Within 10 Hours

According to Kraken, its new Bitcoin Vault offers up to 2.5% APY paid in BTC via third-party DeFi lending strategies and drew $30 million from 4,000 wallets in its first 10 hours.

BTC
AAVE
MORPHO

Fact Check
Kraken's official support page 'What is the Bitcoin (BTC) Vault on Kraken' (support.kraken.com/articles/bitcoin-vault) directly confirms the product and its mechanics — BTC wrapped to kBTC on the Ink network, deployed into DeFi lending via a Veda vault, with BTC-denominated auto-compounding rewards — matching the claim's description of keeping spot BTC exposure while earning BTC-denominated returns through on-chain DeFi strategies. Independent reporting from Crypto Briefing and crypto.news corroborates the launch and characterization.
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Summary

Kraken has launched Bitcoin Vault within Kraken Earn, allowing customers to earn BTC-denominated rewards on bitcoin holdings without selling the asset. According to Kraken, the product offers a variable rate of up to 2.5% APY paid in bitcoin and routes customer assets through DeFi infrastructure built by Veda, with strategy design and risk curation handled by Sentora, allocating capital across onchain lending protocols including Aave, Morpho, and Tydro. The product drew $30 million worth of bitcoin deposits from 4,000 unique wallets within its first 10 hours, indicating strong early demand. Kraken said Bitcoin Vault is aimed at long-term holders seeking passive yield while retaining bitcoin price exposure, but it also warned that the offering is unregulated and subject to technological, market, and operational risks, including possible loss of some or all assets. Bitcoin Vault is available through Kraken’s web platform, Pro platform, mobile app, and Krak app in all Kraken operating jurisdictions except the United Kingdom, the United Arab Emirates, and Australia, and is provided by Payward Wallet, LLC.

Terms & Concepts
  • DeFi: Decentralized finance, a set of blockchain-based financial services that use smart contracts and onchain protocols instead of traditional intermediaries.
  • APY: Annual percentage yield, a yearly rate of return that reflects earnings on an asset over time.
  • Vault: In crypto products, a vault is a pooled account or strategy that manages deposited assets according to predefined rules.