Kraken has launched "Bitcoin Vault," a new product allowing users to earn up to 2.5% annualized yield on their Bitcoin holdings. The yield is generated through on-chain lending strategies involving protocols like Aave and Morpho, managed by DeFi firm Sentora. Users can transfer BTC into the vault, with rewards automatically credited to their Kraken accounts. The displayed yield includes a 25% performance fee. Withdrawals from the Bitcoin Vault require a five-day processing period, offering less liquidity compared to standard spot accounts. This product follows regulatory scrutiny of similar yield offerings by other platforms, such as Gemini Earn and BlockFi, highlighting the ongoing regulatory focus on crypto yield products.