Kraken launches Bitcoin Vault to offer BTC yields via DeFi, urging caution over smart-contract risks

Kraken has launched Bitcoin Vault, an on‑chain yield product on Kraken Earn that lets users retain spot exposure to bitcoin while earning BTC‑denominated returns sourced from DeFi strategies ^{[1] [2] [3]}.

Kraken says the product is accessible directly through Kraken and Kraken Pro, and reporting notes the offering uses DeFi infrastructure — reportedly powered by Veda and operated by Sentora — with user funds allocated across lending protocols such as Aave and Morpho ^{[4] [2]}.

Industry coverage highlights that Bitcoin Vault could increase BTC utilization but cautions users to weigh potential yield against smart‑contract and withdrawal risks inherent in DeFi allocations ^{[5] [1]}.

The launch makes BTC yield generation available within Kraken’s platform via Kraken Earn, offering holders a BTC‑denominated option for passive returns while maintaining spot exposure ^{[2] [3]}.