Kraken rolled out Bitcoin Vault on Wednesday, a new earning product that offers customers up to 2.5% in BTC-denominated rewards. The product is built for long-term Bitcoin holders who want to generate yield without moving their coins off the exchange. Kraken keeps custody of the Bitcoin throughout, and the vault is powered by Veda.
How the yield works
Bitcoin Vault pays rewards in Bitcoin, not stablecoins. The rate — up to 2.5% — is calculated in BTC, so the yield compounds in the asset itself. Kraken said the product is designed for users who plan to hold through market cycles. Customers don't have to lock up their funds for a fixed term, but the rewards are meant to incentivize patience.
Targeting the hodler
This isn't a trading product. It's for people who already own Bitcoin and want it to work for them. The 2.5% cap is modest compared to some DeFi yields, but it comes with Kraken's custody infrastructure. That trade-off — lower return for less risk — is exactly what many retail investors have been asking for. The timing isn't accidental: with interest rates still elevated elsewhere, exchanges are competing harder to keep sticky deposits.
Powered by Veda
Veda, the infrastructure provider behind Bitcoin Vault, handles the yield generation. The facts didn't detail how Veda does it, but the arrangement lets Kraken offer rewards without taking on proprietary trading risk. Veda's role is to supply the engine; Kraken supplies the custody and the customer base.
Bitcoin Vault is available now for eligible Kraken users. The exchange didn't say whether it plans to expand the product to other assets or regions.
