Kraken has started offering on-chain crypto staking again for customers in the United States. The exchange had to stop this service in 2023 after pressure from regulators. Now, it has brought back staking for 39 states and territories. Customers can stake 17 different tokens, including Ethereum (ETH) and Solana (SOL).

Kraken shared that its staking service is now available through Kraken Pro. The platform provides bonded staking, where users lock tokens for a set time to help secure blockchain networks. In return, they earn rewards.

Kraken Strengthens Crypto Participation With Staking Relaunch In The US

The decision to bring back staking comes almost a year after Kraken settled with the Securities and Exchange Commission (SEC). In February 2023, Kraken agreed to pay $30 million and stop its staking service. The SEC had argued that Kraken’s staking platform had unregistered securities.

Kraken’s return to staking shows how the US crypto rules are changing. The past government had taken strict actions, and the SEC had placed many crypto companies under review. Now, with shifting policies, Kraken and other companies are finding ways to restart services that had stopped before.

Mark Greenberg, Kraken’s Global Head of Consumer, said this was a strong step for both Kraken and the US crypto market. He shared that Kraken was happy to introduce a new staking product, letting US customers take part in blockchain security and earn rewards.

Kraken’s new staking service lets users give their tokens to validators. These validators check transactions and add new blocks to the blockchain.

In return, customers receive rewards after fees are removed. To lower risks, Kraken has also added slashing insurance from an outside company. This gives extra protection for US customers.

Kraken is a centralized crypto exchange that first introduced staking in 2019. It was also one of the first platforms to support Ethereum restaking and projects like EigenLayer.

Staking is becoming more important in the crypto world because proof-of-stake systems are widely used. It helps secure blockchains and allows investors to earn rewards.

Kraken Expands Crypto Services While Navigating Regulatory Challenges

Kraken’s decision to restart staking in the US might encourage other crypto exchanges to do the same. This could change how crypto services operate under US regulations.

Kraken (officially known as Payward, Inc.) is a cryptocurrency exchange based in the United States. It started in 2011 and became one of the first bitcoin exchanges listed on Bloomberg Terminal. In January 2024, its value reached $3 billion.

Since 2018, Kraken has faced multiple regulatory investigations and has paid over $30 million in fines. It was also the first cryptocurrency company to receive a bank charter.

Jesse Powell, a graduate of California State University, Sacramento, co-founded Kraken in 2011 with Thanh Luu and Michael Gronager. Powell had previously worked as a consultant for Mt. Gox, helping fix a security issue.

He began developing Kraken as a potential replacement, predicting that Mt. Gox would fail. His prediction came true in 2014 when Mt. Gox collapsed after failing security audits.