Kraken, one of the leading Euro area exchanges, will bring back staking for some US clients. The renewed service comes after a pause since 2023 when regulators called for Kraken to remove staking and pay a $30M fine.
Kraken will reintroduce staking for selected US markets following the change in the US Securities and Exchange Commission regulations. The centralized exchange will reintroduce services for selected US regions, still breaking out of the absolute ban on staking. The renewal of services comes nearly two years after Kraken agreed to discontinue staking-as-a-service.
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Staking is back for some US clients!
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— Kraken Pro (@krakenpro) January 30, 2025
Staking is one of the ways to make use of older coins and tokens without selling and crashing the market. Kraken will bring back staking for selected US states, with the goal of passive income, while securing stake-based chains.
‘Launching this new staking product in the U.S. is an overwhelmingly positive development, not just for Kraken but also for the entire U.S. crypto space,’ said Mark Greenberg, Kraken Global Head of Consumer.
The staking will be brought back in 37 states and 2 territories, expanding to more states as permitted. At first, the service will be available for KrakenPro clients, while all assets will participate in bonded staking with a predetermined lockup period. The assets will then be sent to their respective validators to work for securing networks, including Ethereum, Cardano, and Polkadot.
Staking will not use DeFi tools or other forms of passive income; instead, it will incur only network rewards. The risk of staking is tied to token price fluctuations, but the stake cannot be slashed or taken away. Staking through an intermediary was popular due to convenience, instead of going through unvetted sites or seeking our validators directly.
Staking gained popularity during previous bull markets, as a way to build up network security. Kraken will offer the service for a total of 17 coins and tokens, including Solana. The exact eligibility of countries and territories also depends on the type of asset, as some are unavailable for more restrictive jurisdictions.
Kraken has also included BTC staking, subject to limitations, as well as EigenLayer ETH re-staking. The staking services were never discontinued for global clients, and Kraken has been one of the few centralized exchanges to offer on-chain staking.
The former SEC Chairman Gary Gensler was skeptical of staking-as-a-service, believing it exposed token owners to risk with no recourse to protection. He equated staking to lending and other crypto services, although simple staking is one of the purely technical activities. The new, more lenient line of the SEC means Kraken can offer simple staking for networks that have locked up tokens for years as their usual mode of operation.
Kraken adds payment service with social media handles
Kraken also expanded its crypto presence with a new Kraken Pay service. Kraken has opened an international payment app with a selection of 300 fiat and crypto assets, with username handles recalling Venmo and other user-oriented tools.
To popularize its service, Kraken also preserved the X tags for large X accounts with more than 20K followers.
What’s a Kraktag, and how do you get one?
Your Kraktag is your new unique pay ID — the simpler way to send and receive crypto or cash.
Open up your Kraken App, then navigate to the “Pay” tab in the bottom right to claim your Kraktaghttps://t.co/rqHHfiZmHy
— Kraken Exchange (@krakenfx) January 30, 2025
The name tags are available through Kraken’s basic mobile app, though they are still not available through the website or the Pro version. Kraken’s payment service comes after rapid growth in mobile wallet usage, as more crypto holders turn into active users.
Kraken has been on an expansion arc, going beyond its role as a centralized exchange and into a service hub for multiple crypto tasks. Kraken’s Ink L2 network also grew in the past week, expanding its value under management. Ink onboarded over $80M in its various apps while becoming one of the first chains to host the new version of Tether, USDT0.
Kraken remains one of the top 20 centralized exchanges, with over $46.88B in volumes for the past 30 days. The exchange is one of the hottest hubs for stablecoin trading and offers lending, token trading, and a smart contract platform through its Ink L2 chain.
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