Crypto Exchange Kraken Acquires Staking Platform Staked

Cryptocurrency exchange Kraken (KRAK-USD) has acquired the staking startup Staked, according to a report on 21 December. The acquisition is among the many steps that the crypto exchange has achieved this year, and it is by far the biggest crypto-related milestone for the exchange to date.

Kraken Expands its Crypto Services Provision Network

As per the report’s details, this step aims to expand Kraken’s existing staking services, which are custodial. It also stated that the decision came due to an increased demand for non-custodial staking services by consumers in the crypto industry today.

Kraken ranks as one of the top crypto exchanges in the market, offering an array of services, including account management, staking, futures trading, market prices, indices, margin trading, different funding options, bug bounty, and learning materials, among others. On the other hand, Staked has been a noncustodial staking ecosystem for over three years now.

It offers an infrastructure supported by Kubernetes to increase user convenience across five clouds. As such, the infrastructure enables users to secure user funds in case of any downtimes despite how long they are. This factor makes it a trusted partner for a variety of projects across the crypto industry, solidifying this through its audited infrastructure.

Combining the missions of both platforms will create better earning opportunities for all their users. Moreover, it expands the scope of the products and services available on Kraken today while ensuring continued security for users.

Kraken Expanding Its Progress

Despite the many acquisitions made in the crypto industry over the years, the current event stands as the largest in crypto history. According to its blog post on the same, the exchange defines this as an eye-opening endeavour to its continued success as a top staking service provider. It recognizes its growing user base, which benefits from its portfolio of existing products.

Staked will be a welcome addition to giving users more freedom in how they wish to deal with their funds. In its opinion, it hopes to offer users staking rewards while giving them the chance to have full custody of their investments.

Jesse Powell, the CEO of the exchange stated that both platforms remain complementary to each other, solidifying the products it offers. He also stated that despite the common belief that ‘not your keys, not your coins,’ being a trend, it trusts in its customers’ interest and still offers custodial services to them. Staked helps it expand its current status without relinquishing the wishes of some of its users.

Powell also mentioned that the platform is becoming more encompassing, supporting the migration of the digital world into Web 3.0. It further stands as a hailer of the decentralized finance sector in its services across its years of practice. Currently, it welcomes not only retail investors, but also institutional and professional investors in the industry.

Increased Staking Interest

The Proof of Stake consensus algorithm seems to be the new buzz in town, with major blockchains such as Ethereum transitioning to the same. It solidifies the idea that staking is a popular passive income earning opportunity for all types of investors entering the market.

This milestone by Kraken and Staked is grounding the essence of Proof of Stake in the crypto industry. Despite the exchange’s late entry into staking services, its progress is undeniable, hitting $10.8 billion in staked assets in the Q3 2021.

It also shows how competitive the staking sector has become in the crypoverse. An advisory in the banking sector highlighted that PoS is grounding its roots in what will be the future of blockchain and cryptocurrencies. All in all, Kraken hopes to achieve more in the coming year while progressing this acquisition to building a better staking ecosystem for all.