Kraken launched Bitcoin production
Cryptocurrency Kraken has launched a non-custodial Bitcoin product, offering a 2.5% annual yield, adding to the company's dividend yield as investors' demand for crypto-reward products grows.
Kraken announced the product on Wednesday with support from crypto product infrastructure provider Veda, which said the offering seeks to eliminate “the headaches associated with bagging Bitcoin, moving assets or managing a crypto wallet.”
Kraken's offering comes as Bitcoin (BTC) holders' interest in the product increases, but we've seen limited development as the Bitcoin blockchain lacks a mechanism to generate products for users compared to blockchains like Ethereum and Solana.
“Many bitcoin holders on Kraken have made it clear that they want easier ways to access the bitcoins they already plan to hold,” John Zettler, director of product at Kraken Earn, said in a statement.
Source: Kraken
Within 10 hours of its launch, Veda said Bitcoin production exceeded $30 million worth of Bitcoin deposits from 4,000 unique wallets.
Launched in January, Kraken's three stablecoin production has surpassed $245 million in customer deposits and generated more than $2.2 million in revenue since its January 26 launch.
Related: Coinbase, Apex Group Tokenize Bitcoin Production Fund on Base
Kraken produces Bitcoin by converting it into Kraken Package Bitcoin (kBTC), a token that replicates the value of Bitcoin, which crypto platform Centora then assigns to crypto lending platforms like Ave, Morpho, and Tydro.
The product is not custodial, meaning you can only withdraw or transfer your deposits. Withdrawal processing is estimated to take five days, and service providers charge a 25% performance fee for rewards.
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