Kraken Unveils Bitcoin Vault for Yield Generation

Kraken has introduced a new offering that enables Bitcoin investors to generate passive income on their digital assets without direct engagement with decentralized finance applications.

The product, dubbed 'Bitcoin Vault', was developed in partnership with cryptocurrency yield infrastructure provider Veda. When users place Bitcoin into the vault, it is transformed into Kraken Wrapped Bitcoin (kBTC), a token designed to mirror Bitcoin's market value.

Sentora distributes the kBTC throughout DeFi lending markets such as Aave, Morpho, and Tydro, generating returns that flow back to vault participants. The structure operates on a non-custodial basis, granting sole access and control to depositors themselves.

According to Kraken, the withdrawal process requires an estimated five-day timeframe. Service providers collect a 25% performance fee from generated earnings.