Kraken Launches Non-Custodial Bitcoin Yield Product with 2.5% Annual Return
- Kraken has introduced a non-custodial Bitcoin product offering a 2.5% yearly yield.
- The product quickly attracted over $30 million in deposits from approximately 4,000 unique wallets within hours of launch.
- Kraken’s previous stablecoin yield products have amassed around $245 million in customer deposits since January.
- Yield is generated by converting Bitcoin to Kraken Wrapped Bitcoin (kBTC), which is then allocated across lending platforms like Aave.
- Withdrawals from the product are estimated to take up to five days, with a 25% performance fee on rewards.
This new offering aims to meet the rising demand for yield products among Bitcoin holders, addressing challenges associated with managing assets on the Bitcoin blockchain compared to others like Ethereum and Solana.
With over $30 million in initial deposits, Kraken’s new product reflects significant interest in earning yields on Bitcoin holdings.(Source)
