Staking Is Back on Kraken

TLDR

• Staking is back on Kraken!
• It’s currently available to users in 37 states.
• Kraken was one of the first major exchanges to offer staking, but ceased services to US users as part of a settlement with the SEC in 2023.

After nearly a two-year hiatus, Kraken is reintroducing staking services for U.S. clients. If you’re new to crypto or just getting familiar with the term “staking,” don’t worry — we’ll break it down for you. Here’s what you need to know about Kraken’s latest move, why it’s important, and how it affects your crypto experience. 

Why Staking Matters in Crypto 

Before we dig into Kraken’s announcement, let’s quickly define staking. Staking is a process unique to cryptocurrencies that use a Proof of Stake (PoS) model, such as Ethereum. 

By staking your crypto, you help secure the network and, in return, earn rewards. PoS blockchains are run by validators. More validators means more decentralization, provided enough people are staking on the validators to make it worth the trouble. 

Think of it as putting your assets to work for you — kind of like earning interest in traditional finance, except it’s for the decentralized blockchain world. 

Staking plays a massive role in ensuring the security and efficiency of PoS blockchains. It’s also become a popular way for crypto holders to earn passive rewards while supporting their favorite projects. 

However. There is a catch. You can’t just put your tokens in and pull out of validators as you see fit. There is a lockup period that you have to commit to when you stake. A couple of years ago, this problem was solved by LSTs and LRTs. 

These are protocols that stake. Instead of giving your tokens to a validator, you give it to them, they stake it, and the user receives a liquid staked token representing that position that can be used for lending, farming, and other on-chain activities.

Kraken’s Staking Pause and the Big Comeback 

Kraken first introduced staking services back in 2019, becoming one of the early adopters of the feature among major centralized exchanges. 

However, in February 2023, Kraken hit a roadblock. Following a $30 million settlement with the U.S. Securities and Exchange Commission (SEC), they were required to pause staking services for U.S. clients. 

Fast forward to today — Kraken is making its grand comeback in staking. This move reflects an improved regulatory environment under new SEC leadership and signals a key moment for U.S. crypto users looking to re-engage with staking services. 

The New Staking Product for U.S. Users 

As of now, Kraken’s revamped staking service is available to clients in 37 states and two territories, with plans to expand further in the future. Here’s how it works this time around:

• Bonded Staking: This option lets you lock up (or bond) your crypto assets for a specific period. 
• Delegated Validators: Kraken will delegate your staked assets to network validators, who handle transaction validations and block production. Rewards — minus a small fee — are passed back to you. 

Additionally, Kraken will allow U.S. clients to stake 17 different assets, including major cryptocurrencies like Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). 

If you’re new to staking, this updated setup aims to simplify and secure the experience — ideal for crypto beginners looking to dip their toes in the staking pool. 

Why Does This Matter? 

It’s actually a pretty big deal for everyone, not just new users. The return of staking services on Kraken has implications beyond just convenience. Here’s why it’s worth your attention:

1. Earning Passive Rewards

For crypto users, staking is an opportunity to put your dormant tokens to work. Instead of letting them sit idly in your wallet, staking activates them to help secure the blockchain while earning you rewards in return — passive income, simplified. 

2. Easier Access to Blockchain Participation

Staking used to be complex, requiring you to interact directly with blockchain networks. Kraken’s user-friendly platform removes those technical barriers, making staking more accessible, even for beginners. 

3. Strengthening the Ecosystem

By staking your assets, you’re contributing to the security and efficiency of blockchain networks. It benefits you and helps provide longevity and reliability to the entire crypto space. 

Kraken’s Vision for Staking 

For Kraken, this is more than just restarting a paused service. Their team sees staking as essential to the future of crypto adoption. 

Mark Greenberg, Kraken’s Global Head of Consumer, emphasized the importance, saying, “Onchain staking is a key component of how we fulfill this role, and we believe the resumption of staking in the U.S. today will play a significant role in the development and mass adoption of crypto.” 

The exchange isn’t just aiming to help users earn rewards — it’s positioning itself as a bridge between everyday users and the broader world of decentralized networks.

Like their own, Ink, which launched a couple of months ago.

Their restaking integration, aimed at supporting projects like EigenLayer, is one example of how Kraken continues innovating within the staking space. 

What’s Next for Kraken and U.S. Crypto Users? 

Kraken’s decision to reintroduce staking services signifies the company’s commitment to providing U.S. users with the same tools and opportunities international users receive. It’s also a sign of the evolving regulatory landscape, which could bring more clarity and opportunities for American crypto enthusiasts. 

For now, if you’re eligible and ready to explore staking, Kraken offers a straightforward way to participate. Whether you’re looking to earn rewards, contribute to blockchain security, or simply learn more about crypto, staking through Kraken Pro is worth considering. 

Take the Next Step in Your Crypto Journey 

If you’re new to staking or crypto in general, now’s a great time to get involved. Kraken’s simplified onboarding process and wide selection of assets make it beginner-friendly while still catering to the needs of experienced users. To learn more about the tokens you can stake and find out if your state is eligible, visit Kraken’s website. Turn your crypto hustle into passive rewards while playing a role in shaping the future of blockchain tech.