Jack Paul 
Kraken’s DeFi Earn product has reached a significant milestone, surpassing $200 million in deposits. The program allows users to earn returns on their crypto balances without leaving the Kraken app or managing complex blockchain wallets. It is designed for those who want exposure to onchain yields but prefer a simple, integrated experience.
The product works by converting user deposits into USDC and allocating them into onchain strategies through three vaults. These vaults are powered by Veda, a DeFi infrastructure provider. Veda’s technology connects the vaults to multiple protocols and blockchains, which helps optimize yields over time. More than 40,000 users have already used the vaults through the Kraken app to earn yield on cash and stablecoins.
How It Differs from Earlier DeFi Products
In previous market cycles, many DeFi products relied on promotions like rewards or airdrops to attract deposits. Kraken takes a different approach. It leans on its existing user base and offers a familiar interface. Users can opt into onchain yield from the same app they already use for trading and custody. This reduces friction and makes the process feel more like a standard banking feature than a complex crypto experiment.
Technology and Strategy Behind the Vaults
Veda’s vault infrastructure is multichain and multiprotocol. It allows Kraken to offer DeFi yields without users needing to manage wallets or navigate protocols directly. The vaults run on Kraken’s Ethereum L2, called Ink, while sourcing yield from protocols on both Ink and Ethereum. Vault curators, including Chaos Labs and Sentora, allocate deposits across trusted protocols to generate passive income. According to Sun Raghupathi, co-founder of Veda, the partnership gives Kraken a way to deliver a smooth experience while tapping into onchain markets that offer higher variable APYs than traditional products.
Expansion and Regulatory Context
Kraken has been rolling out and refining DeFi Earn in the US, Canada, and Europe. The company pairs the product with new security education around scams and safe usage. Meanwhile, Kraken has also been in the news for its IPO push and securing direct Federal Reserve payments access. These developments have sparked scrutiny over how deeply a crypto-native institution should be integrated into core US financial systems. But they also strengthen Kraken’s pitch as a regulated, bank-like venue rather than a pure exchange. The DeFi Earn product fits into that broader strategy, offering a bridge between traditional finance and decentralized yield.