Kraken, a major US cryptocurrency brokerage, has announced the acquisition of Staked, a non-custodial staking platform that allows investors to capitalize on their holdings in crypto-assets issued by proof of stake (or PoS) blockchains.
The terms of the deal are not yet publicly available but, according to Kraken, “it is one of the biggest deals in the history of cryptocurrencies.”
“This acquisition perfectly complements our custodial staking offering, allowing all of our customers to earn rewards over their cryptocurrencies while retaining complete control over their cryptoassets,” said Kraken.
“Staking” refers to the process of obtaining passive income in cryptocurrencies based on the proof of stake consensus mechanism. It involves allocating cryptoactives to the network to help validate transactions and make the blockchain more secure.
In turn, users receive rewards, usually on staking cryptocurrencies, with average rates of return that vary from network to network.
site data Staking Rewards show that the most popular cryptoactives for staking include Solana, Ethereum 2.0, Cardano, Terra, Avalanche, Polkadot, Binance Coin, Algorand and Polygon.
A key feature of the Kraken acquisition is that Staked offers non-custodial access to cryptocurrencies, meaning users have full control of their private keys.
According to Kraken, the broker respects and supports the right of customers to retain custody of their cryptocurrencies, even if this sometimes results in security-related disadvantages.
“With this acquisition, our customers now have more options in how they choose to manage their funds when staking with Kraken,” he added.
Kraken’s acquisition history
Kraken, which this year celebrated its tenth anniversary, has a long history of acquisitions, including the acquisitions of Swiss graphics and trading terminal CryptoWatch in 2017, London financial services company Crypto Facilities in 2018, and crypto data and intelligence company CryptoFinance.ai in 2019.
According to Kraken, Staked is its fifth acquisition in 2021. The San Francisco brokerage also said that so far its staking business has grown by about 950% to nearly $16 billion.
Last week, there was the launch of Kraken Ventures, an independent investment fund led by ex-Krakens, with a focus on early stage companies and protocols that fuel the next wave of crypto and fintech innovation.
Kraken Ventures focus areas include financial infrastructure, Web 3, Decentralized Finance (or DeFi), and crypto protocols for clients, as Blockdaemon, Anchorage, Messari, Hashflow, Acala, and pStake are among the companies that have already received financial support from the fund .
*Translated and edited by Daniela Pereira do Nascimento with permission from Decrypt.co.