Kraken Staking Review 2025 – What is Kraken Staking?

Crypto staking provides a way to earn a yield on popular cryptocurrencies such as Ethereum and Solana. Kraken offers extensive support for staking, with 24 assets supported. In this Kraken staking review, we’ll examine the pros and cons of using Kraken for staking cryptocurrencies.

Staking allows you to put assets to work, and the yields help you build your portfolio. Several popular platforms offer staking, each with its own approach to the staking market and yield products. We’ll also compare Kraken staking against some alternatives. Let’s start with some key takeaways.

What Cryptocurrencies Can You Stake on Kraken?

Kraken supports 18 cryptocurrencies for on-chain staking, with additional opt-in yield products for four cryptocurrencies. The platform also provides a yield on Euro (EUR) and USD balances in eligible countries.

Eligibility for staking varies by region. For example, staking for The Graph (GRT) is not available in Canada, and US residents cannot stake on Kraken following a settlement with the US Securities and Exchange Commission (SEC).

Although the interfaces are similar, on-chain staking with Kraken and opt-in rewards differ in how they generate yields. On-chain staking refers to true proof-of-stake, in which cryptocurrency tokens are used as collateral to secure blockchain transactions. These protocols reward stakers with tokens in exchange for securing the chain. By contrast, yields on opt-in yield products can come from any source, although lending for leverage markets is the most likely usage. Carefully review Kraken’s Terms of Service (ToS) before allocating funds.

Cryptocurrencies Supported by Kraken (On-Chain Staking)

Kraken supports both on-chain staking and opt-in rewards. Let’s look at which assets earn yields in each category. Yields also vary based on time commitment as well as the amount staked in some cases. Kraken offers lower commission rates based on higher staking balances. We’ll discuss commission rates in more detail later in our Kraken staking review.

The Kraken platform offers bonded staking (time commitment) and flexible staking, which pays a lower rate but allows you to unstake at will. The reason for lower rates for flexible staking is that Kraken keeps a portion of “staked” balances unstaked to provide liquidity for withdrawals. These unstaked balances don’t earn a yield but allow flexibility. Unbonding periods range from three days to 28 days, making flexibility important to many investors.

Notably, Cardano does not have an unbonding period, allowing flexible staking.

Other Kraken Yield Products (Opt-In)

Kraken also offers yields on several other cryptocurrencies as well as a yield on Euro and USD balances. We’ve listed these assets in the table below.

For both on-chain staking and opt-in yield products, yields are paid weekly in the same type of assets deposited into the pool.

On-chain yields come from staking rewards paid by each protocol. However, opt-in yield products receive yields from various sources, which may include lending or other on or off-chain activities per Kraken’s ToS.

Kraken Staking Rates

Centralized platforms like Kraken collect a commission on staking, part of which may be paid to third-party validators. For example, it’s common for Ethereum validators to charge a 10% commission. This structure allows users to stake smaller amounts and avoids the complexity and considerable costs associated with running a validator node of your own. In a way, you’re renting space for the cost of commission.

However, commissions directly affect yields, with higher commissions leading to lower yields. Additionally, Kraken uses two tiers: bonded and flexible. Bonded rates are higher but require a time commitment. Flexible rates are lower because some of the assets in the staking pool are not staked to maintain liquidity for withdrawals.

The rates below are quoted as an annual percentage (APR) because Kraken deposits ETH earnings directly to your trading account rather than automatically compounding them. Rates also vary based on the amount of total supply staked for each protocol.

The commission also varies based on the staked amount. For example, in the table above, we indicate a 20% commission for ETH staking. However, this commission rate is lower for higher staking amounts, as shown below.

Kraken Commissions

Similar scales apply to on-chain staking for other supported assets. The more you stake, the more you make, with higher yields at each new threshold, thanks to lower commissions.

We’ll compare rates and commissions in more detail in the next section of our Kraken staking review. However, to compare ETH commissions quickly, Coinbase generally keeps 25% of staking yields, whereas Binance takes 10% as commission. By comparison, Kraken keeps 20% of staking rewards as commission.

How Competitive is Binance Staking APY?

Kraken’s staking yields are competitive, although the wide range of yields makes direct comparisons challenging. The platform also offers on-chain staking yields on a wider range of assets compared to competing platforms like Binance and Coinbase.

In previous articles, we reviewed Coinbase staking and Binance staking, which allows us to compare yields when each platform offers products for the same asset. Specifically, we can compare yields for Ethereum and Solana, which are both supported by all three platforms.

Part of the difference in rates stems from the commission rates for each platform. The commission is deducted from staking rewards. For example, if you earn $100 from staking and the commission is 10%, you’ll be paid $90. Binance’s commission schedule is the easiest to follow at 10% for both Solana and Ethereum. Coinbase’s commission structure varies by asset and may be lower on some assets if the user subscribes to Coinbase One. Kraken is the toughest to follow due to the wider variety of cryptocurrencies eligible for on-chain staking.

Kraken Staking Yields Compared

Because we’ll be comparing Kraken staking yields against Coinbase and Binance, we’ll use the Kraken bonded rate, which is the most similar to Coinbase’s structure. Binance staking uses liquid staking tokens that can be sent, spent, traded, or used as collateral. However, Binance only offers on-chain staking for ETH and SOL.

Staking yields fluctuate based on supply and demand, so expect some variance in your weekly rewards. Kraken’s staking support page provides a detailed overview of the platform’s on-chain staking yields and fees.

Is Kraken Staking Safe?

Kraken rewards promise a way to grow your crypto portfolio with a few clicks, but is it safe? Generally, most of the risks associated with staking on Kraken parallel those found on other centralized platforms. These include account breaches, frozen accounts, and price risk for locked tokens. Let’s explore some considerations to weigh before you stake on Kraken or a similar platform.

Account-Related Considerations

Your account’s security depends on a strong password, but Kraken also offers two-factor authentication (2FA) to add additional protection. You can use an app like Google Authenticator to generate time-sensitive passcodes for your account.

However, as a centralized crypto exchange, Kraken controls account access and can freeze withdrawals, freeze accounts, or close accounts if it detects suspicious or prohibited activity. The platform also pauses withdrawals for 24 hours following a password change.

Capital Protection

Staking itself comes with some risk. Most popular proof-of-stake protocols use a mechanism called slashing to enforce validation rules. Staked tokens act as collateral and effectively vouch for the validator to which they are staked. If the validator breaks the rules, staked funds may be “slashed,” meaning the funds are forfeited.

Slashing is relatively rare, and some protocols, such as Cardano, don’t use slashing at all. However, a more pressing concern may center on opt-in yield products. It’s not clear how these funds will be used, and Kraken describes its opt-in rewards program as risky.

Hacking and Phishing Risks

Many consider Kraken one of the most secure exchanges. This reputation dates back to its inception when Kraken co-founder Jesse Pollack aided the effort to recover funds from the Mt. Gox crypto exchange hack. Kraken launched in the same year, aiming to provide crypto investors with a more secure way to transact.

However, every crypto exchange is a target for hackers and phishing attacks that attempt to breach the platform’s security. Users should be aware of these risks and that little can be done following an exchange hack. Stolen funds may never be recovered.

Proof of Reserves

To its credit, Kraken was one of the first exchanges to provide a comprehensive, third-party-reviewed proof of reserves (PoR). This process verifies that the exchange has enough crypto assets to cover user deposits and liabilities.

Kraken’s PoR covers the following:

• Spot balances
• Staking balances
• Margin trading
• Futures balances

It’s not easy to determine whether a crypto exchange has adequate assets to cover deposits and other activities or is playing a shell game. Kraken puts solvency fears to rest.

Price Risk for Locked Assets

Bonded yield products on the Kraken exchange cannot be withdrawn or traded. If the market crashes or you find a better opportunity, you won’t be able to use these assets until the bonding period ends.

How to Stake on Kraken

Kraken staking makes a complex task easy. The process is similar to that of using the user-friendly Kraken Classic interface or Kraken Pro, which caters to advanced users. You can also stake from Kraken’s mobile application.

1) Sign up for a Kraken Account

Visit Kraken.com and enter an email address address to begin the signup process. Kraken will verify your email address. During this step, you’ll choose a password, provide your name and address, and complete a short questionnaire. You’ll also need to provide a government-issued ID to comply with regulations that require banks and money service businesses to verify customer identities.

2) Choose a Funding Source

Kraken supports bank deposits via SWIFT or SEPA and can connect to online banking through Plaid. You can also use a debit or credit card, although card payments are not always available in all locations.

Card payments are only supported for Kraken Classic, which uses a newbie-friendly buy-and-sell widget. To deposit funds for trading on Kraken Pro, you’ll need to use a bank deposit.

3) Purchase an Eligible Cryptocurrency on Kraken

Use the Buy/Sell widget or Kraken Pro (advanced trading) to buy a cryptocurrency to stake. Kraken also supports crypto transfers if you already own an eligible asset held in a crypto wallet.

Review the fees and purchase amount before completing your purchase. Notably, fees are higher for Kraken Classic and orders that use card funding.

4) Stake Your Crypto

Look for the Earn section on the Kraken or navigate to your assets and select an asset you want to stake. Depending on the options available for the selected asset, choose between bonded or flexible staking. Then, choose an amount to stake.

The staking process usually takes a few minutes to complete, and staked assets will appear under your staking assets. That’s it. Check your balances periodically to watch your earnings accrue weekly.

Kraken Staking Pros & Cons

Kraken’s broad support for staking and robust security make it an attractive choice for many crypto investors. Let’s weigh some of the pros and cons of Kraken staking.

Is Kraken the Best Platform for Staking?

Kraken compares well with other centralized platforms, charging lower commissions than Coinbase and offering more on-chain staking options than either Coinbase or Binance. However, the platform’s centralization also creates some limitations, inviting comparison with newer options like Best Wallet.

The Best Wallet app, currently available for iOS and Android, allows you to buy and trade popular liquid staking tokens like Lido stETH. These tokens accrue staking yields without requiring you to lock up your funds. Instead, you can send, spend, or trade the tokens.

Best Wallet puts users in control rather than exchanges. Features like the app’s upcoming staking aggregator give users the ability to compare staking yields and choose where to deploy their capital. The wallet app already includes a decentralized exchange (DEX) aggregator that intelligently routes trades to get the best value.

The Best Wallet team is developing a wealth of new features, as detailed in the roadmap below. Phase 3 will include a staking aggregator and derivatives trading, making this easy-to-use wallet a portable powerhouse for active traders and yield-earning positions.

New token listings are always available in the Best Wallet Launchpad, and the platform’s own Best Wallet token is available in presale. Best Wallet token owners earn additional discounts on select transaction fees and can vote on governance proposals that determine the app’s next steps and markets.

Best Wallet supports BNB, Ethereum, and Polygon networks. Phase 2 calls for expanding to more than 60 blockchains. Phase 3 will bring access to these assets through a browser extension in addition to the mobile app. As this app develops, it aims to become a better choice for staking for many in the crypto space compared to centralized options like Kraken, Binance, or Coinbase.

Conclusion

Kraken staking offers a wider range of on-chain yield opportunities than well-known centralized platforms like Coinbase and Binance. The platform offers ways to earn on 24 assets, including USD and EUR. However, geographic restrictions prevent staking or yield-product access for some of the largest markets, including the US.

Crypto investors in these restricted markets and those who prefer complete control over their crypto assets may be better served by the easy-to-use Best Wallet app. Investors gain direct access to liquid staking tokens, and the upcoming staking aggregator will allow users to easily compare yields on a wide variety of protocols to maximize earnings.

FAQs

References

• Kraken to Discontinue Unregistered Offer and Sale of Crypto Asset Staking-As-A-Service Program and Pay $30 Million to Settle SEC Charges (sec.gov)
• Terms of Service (kraken.com)
• Overview of Onchain staking on Kraken (kraken.com)
• Account Closures: Safeguarding Our Clients and Kraken (kraken.com)
• 13 years ago: The Kraken emerged (kraken.com)
• Our commitment to transparency (kraken.com)
• Information on Complying with the Customer Due Diligence (CDD) Final Rule (fincen.gov)