Crypto exchange Kraken has launched a non-custodial Bitcoin product offering a 2.5% annual yield, addressing growing investor demand for crypto reward products.
Unveiled Wednesday with support from yield infrastructure provider Veda, the product removes the complexity of wrapping Bitcoin or managing separate wallets.
The yield is generated by swapping Bitcoin for Kraken Wrapped Bitcoin (kBTC), which is then allocated across lending platforms like Aave, Morpho, and Tydro.
Within 10 hours of launch, the BTC Vault attracted $30 million in deposits from 4,000 unique wallets.
Kraken's product is non-custodial, meaning only depositors can withdraw funds, though withdrawals may take up to five days. Service providers charge a 25% performance fee on rewards.
Kraken's earlier stablecoin yield products, launched in January, have accumulated over $245 million in deposits and generated more than $2.2 million in yield.