Kraken has introduced a Bitcoin staking service through a partnership with Babylon, enabling users to stake Bitcoin directly on the native chain. The staked Bitcoin is delegated to a Proof-of-Stake (PoS) network via Babylon, with rewards distributed in BABY tokens. This on-chain mechanism is secured by Bitcoin scripts and cryptographic safeguards, ensuring protection against malicious activities. Users can cancel their stake at any time, with a 7-day unbinding period.