Kraken Builds a Multi-Asset Onchain Yield Platform on Morpho
$300M+
15M+
"Kraken customers want to earn on the crypto they already hold, through the kind of simple, intuitive experience they've come to expect from us. Vaults on Kraken are powered by top-tier DeFi protocols like Morpho, giving users rewards without the complexity of managing DeFi themselves."John Zettler, Director of Product, Kraken Earn & Trade
The Opportunity
Kraken has long been a trusted gateway for digital assets. Alongside trading, Kraken has offered a variety of staking products that allow users to earn rewards on idle assets.
As the crypto market matured in 2025, expectations shifted toward earning rewards on more types of idle assets. In practice, this often means accessing onchain yield.
However, interacting directly with DeFi is still only accessible for a few users who are DeFi-native. Wallet setup, gas fees, transaction signings, seed phrase management, and more are steps that mainstream users do not want to manage.
The opportunity was to expand Earn opportunities and package onchain rewards into a Kraken-native experience, so millions of customers can earn onchain without having to interact with DeFi directly.
The Solution
Kraken’s DeFi Earn lets users access onchain yield through the signature Kraken experience. Users make a few clicks to deposit, and the Kraken app handles the rest.
Customers can view their balance, track yield, and withdraw without managing seed phrases or signing transactions manually. Withdrawals are typically instant when vault liquidity is available. Depending on the strategy a user subscribes to, there may be a redemption window or temporary delays.
Behind the scenes, vaults allocate user deposits across onchain markets via Veda vaults, with strategy design and risk curation by Sentora. The bulk of the yield comes from Morpho.
Kraken started with a simple earn experience on stablecoins: users supply stablecoins into a Veda vault, which is allocated into Morpho Vaults, that earns yield from borrowing demand across Morpho Markets.
Bitcoin Vault extends the same simple experience to yield on BTC; underneath, it is a more complicated strategy only possible on Morpho’s isolated markets. Users deposit BTC, Sentora manages strategies which borrow Stablecoins against BTC to earn yield in stablecoins, before reallocating the funds back to users in Bitcoin.
The Results
The integration has expanded Kraken’s Earn offerings beyond staking-only rewards into a multi-asset DeFi Earn platform spanning stablecoins and BTC.
With Kraken’s trusted interface on the frontend and Morpho’s open credit network in the back, DeFi Earn has scaled quickly:
- $200M+ supplied into Morpho Vaults via Kraken DeFi Earn (Stablecoin Earn)
- $150M+ deposited into the Bitcoin Vault in the 1st week, earning rewards paid in BTC all from Morpho
Millions of Kraken users now have access to onchain rewards on the assets they already hold, without ever needing to become DeFi experts