Cryptocurrency exchange Kraken has launched a new Bitcoin Vault (CRYPTO: $BTC) that offers passive yield to long-term holders of the digital asset.
Privately held Kraken says its customers can now earn yield on their Bitcoin holdings without selling the cryptocurrency.
The Bitcoin Vault product works with Kraken Earn and allows users to win rewards denominated in BTC while maintaining exposure to the cryptocurrency’s price movements.
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It is aimed at long-term investors who are seeking passive income opportunities tied to digital assets, said Kraken in a news release.
The new offering is powered by DeFi infrastructure provider Veda and operated by Sentora, with customer assets allocated across established onchain lending and yield protocols.
“Many Bitcoin holders on Kraken have made it clear they want simple, safe ways to earn on the Bitcoin they already plan to hold… Bitcoin Vault is built for that mindset,” said the firm.
Crypto vaults are pooled investment products that deploy users’ assets across DeFi protocols to generate yield.
Bitcoin Vault marks the latest step in Kraken’s push into onchain financial products as exchanges seek to attract users seeking yield generation on their crypto holdings.
Kraken has been expanding its product offerings ahead of an initial public offering (IPO) that’s expected later this year.
The company’s stock is currently not traded on a public exchange.