Kraken Introduces Non-Custodial Bitcoin Product with 2.5% Yearly Yield

Kraken has introduced a new non-custodial Bitcoin product that enables holders to earn a yearly yield of 2.5%. The product, which is backed by crypto yield infrastructure provider Veda, seeks to simplify the process of generating income on Bitcoin investments.

The launch of this product comes as demand for crypto reward products continues to rise among investors. Kraken's non-custodial offering allows depositors to withdraw or transfer their funds at any time, although withdrawals are estimated to take five days to process.

According to the company, the new product will generate yield by swapping Bitcoin into Kraken Wrapped Bitcoin (kBTC), a token that replicates the price of Bitcoin. The kBTC is then allocated across various crypto lending platforms, including Aave, Morpho, and Tydro, where it can earn interest.

The introduction of this product marks another step in Kraken's expansion of yield-generating products for its users. In January, the company launched three stablecoin yield products that have already exceeded $245 million in customer deposits and generated over $2.2 million in yield.