Kraken Launches Non-Custodial Bitcoin Yield Product with 2.5% Annual Return
- Kraken’s new product offers a 2.5% yearly yield on Bitcoin deposits.
- The launch, supported by Veda, aims to simplify the process of earning yield without managing a wallet.
- Within 10 hours, the product attracted over $30 million in deposits from 4,000 unique wallets.
- Kraken’s previous stablecoin yield products have accumulated around $245 million in customer deposits since January.
- Yield is generated by converting Bitcoin into Kraken Wrapped Bitcoin (kBTC) for allocation across lending platforms like Aave.
- Withdrawals from the non-custodial service are estimated to take up to five days, with a 25% performance fee on rewards.
The launch of this non-custodial product addresses rising demand among Bitcoin holders for simple ways to earn yield, especially as traditional mechanisms are limited on the Bitcoin blockchain compared to others like Ethereum.
With over $30 million in deposits within hours, Kraken’s initiative reflects significant interest in crypto yield products among investors holding Bitcoin.(Source)
