Introducing Kraken’s New Onchain Staking Product for US Clients
Kraken has recently announced the launch of a new onchain staking product specifically designed for its US clients. This move marks a significant return to staking services in select states after the company faced regulatory scrutiny in the past.
Key Features of the Offering:
- Users in 37 states and two territories can now stake digital assets such as Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA).
- The product aligns with the global availability of similar staking products and aims to expand access as permitted by state regulations.
Quote from Kraken’s Global Head of Consumer:
“Launching this new staking product in the U.S. is an overwhelmingly positive development, not just for Kraken but for the entire U.S. crypto space. We believe this will play a significant role in the development and mass adoption of crypto.”
Overcoming Regulatory Challenges:
After settling with the Securities and Exchange Commission (SEC) nearly a year ago, Kraken has introduced a new staking model that is fully compliant with existing regulations. This model involves delegating assets to validators who process transactions and secure blockchain networks, with rewards returned to users minus fees.
Market Trends and Industry Impact:
Kraken has been a pioneer in onchain staking since 2019, and its revamped U.S. staking service aims to provide users with similar options available internationally. The rise of proof-of-stake (PoS) as a dominant consensus mechanism in the crypto industry has led to increased regulatory scrutiny, but Kraken’s ability to resume staking in the US signals a shift in how crypto firms approach compliance while offering staking services as a core feature.
Risks Associated with Staking:
It’s important to note that staking involves inherent risks, including potential loss from slashing penalties, bonding periods, and asset depreciation. Users should carefully consider these risks before engaging in staking activities.