Kraken Launchs Bitcoin Vault Offering Up to 2.5% APY for Long-Term BTC Holders

Kraken has introduced a new product called Bitcoin Vault, allowing U.S. Bitcoin holders to earn up to 2.5% APY in BTC rewards. While maintaining long-term exposure to Bitcoin.
The new feature is designed for investors who want passive income on their BTC without dealing with the complexity of decentralized finance platforms or external wallets. Kraken stated that the vault uses DeFi lending strategies powered through protocols like Aave and Morpho. While focusing on security, simplicity, and accessibility for everyday users. The launch reflects a growing trend in the crypto industry where exchanges are expanding beyond trading services and turning Bitcoin into a yield-generating asset for long-term holders.
Despite the attractive returns. Kraken also warned that the product carries risks associated with smart contracts, market volatility, and decentralized finance infrastructure.
Clever Robot News Desk 28th May 2026



