Crypto Exchange Kraken Launches New Staking Business for Ethereum, Solana

Top American crypto exchange Kraken has announced a new staking product for customers in the U.S.—nearly two years after regulators sued the company for offering a similar service.

“The staking product that we launched is distinct from the one we settled with the SEC in February 2023,” a Kraken spokesperson told Decrypt. “Kraken is providing mere administrative support for staking on the blockchain by connecting client tokens to the network.”

The San Francisco-based exchange said Thursday that, starting today, American customers in 37 states and two territories will be able to stake their digital assets via the Kraken Pro service.

“These clients will be able to participate in bonded staking, which locks up/bonds crypto assets to the network for a specific period of time,” the exchange spokesperson added.

Staking is the process of “locking-up” cryptocurrency to keep a blockchain’s network running. Those who hold proof-of-stake assets—such as Ethereum (ETH), the second biggest digital coin—pledge it to the network by sending it to a specific blockchain address. Once they’ve done that, stakers receive rewards for as long as they keep their assets locked up.

But the process has, at times, been controversial. In 2023, the Securities and Exchange Commission hit Kraken with a $30 million fine and ordered it to halt its staking service. The regulator’s former chairman, Gary Gensler, said at the time that the exchange was making profit by allowing customers to stake unregistered securities.

But the SEC now has a more crypto-friendly chairman, Paul Atkins, following the election of President Donald Trump in November. The new U.S. commander in chief has promised to help the digital asset industry.

Kraken’s Global Head of Consumer, Mark Greenberg, said in a statement: “We are excited to bring back a brand new product enabling U.S. clients to resume staking with Kraken and play a significant role in bolstering the underlying security of blockchain networks.”

A number of top cryptocurrencies require users to stake, including Cardano, Solana, and Polkadot.

Edited by Stacy Elliott.