Kraken buys Staked to offer non-custodial staking to 8.5 million users

Rick Steves

The company’s staking business has grown by more than 950% YTD to nearly $16 billion in November, resulting in token rewards valued at more than $500 million being paid out to clients.

Kraken has acquired Staked, a non-custodial staking platform that enables investors in Proof-of-Stake networks to easily and securely compound their holdings.

Details of the deal were not disclosed but the digital asset platform claims it is one of the largest crypto industry acquisitions to date.

Non-custodial alternative to Kraken’s custodial staking service

Kraken has positioned itself as a leading provider of staking services to consumers and institutions. The acquisition solidifies that claim by expanding the number of supported networks and enabling a non-custodial alternative to Kraken’s existing custodial staking service.

Jesse Powell, Chief Executive Officer and co-founder of Kraken, said: “We are excited to add Staked to our portfolio of yield products, which has seen great uptake by a growing population of crypto investors.

“Staked is highly complementary to our existing staking business and will allow us to further strengthen our product offering through world-class infrastructure for clients who prefer to retain custody of their staked assets. We’re excited to welcome Staked’s clients to Kraken and believe that they will benefit from access to our wider portfolio of products as they seek to broaden their engagement with digital assets”, Powell continued.

“The success of our staking business demonstrates that Kraken has evolved into much more than a custodian and trading venue. We’ve become a holistic crypto platform with a diverse range of products that serves the needs of retail, professional, and institutional clients. Heading into the second decade in our company’s history, I’m excited about the future and Kraken’s continued support of the world’s shift to Web3 and DeFi.”

Tim Ogilvie, CEO of Staked, added: “Kraken’s acquisition of Staked represents an exciting new chapter for us. Kraken clearly shares our commitment to supporting proof-of-stake networks, having a security-first mindset, and unwavering focus on customer experience, which makes them an ideal partner. Combining our businesses will enable us to provide a more seamless experience and expand our product offering to meet our clients’ needs in staking and beyond.”

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Kraken is largest crypto exchange based on euro volume and liquidity

The acquisition of Staked is Kraken’s fifth acquisition in 2021. This one brings Kraken closer to the emerging segment of staking, which allows investors to earn yield without relinquishing custody of their crypto assets.

This way, Kraken keeps up with the industry moves in order to retain users and attract new ones, from both the retail and professional channels.

Kraken’s combined spot, margin and futures trading volume has grown by over 430% in 2021. The company’s staking business has grown by more than 950% YTD to nearly $16 billion in November, resulting in token rewards valued at more than $500 million being paid out to clients.

This digital asset platform is particularly popular among European users as it is the largest crypto exchange based on euro volume and liquidity.

Kraken’s client base trades more than 90 digital assets and 7 different fiat currencies, including GBP, EUR, USD, CAD, JPY, CHF and AUD. The operator offers spot trading with margin, parachain auctions, staking, regulated derivatives and index services.

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