Kraken launched DeFi Earn across major regions, offering centralized users regulated access to on-chain yields through managed vault infrastructure.
Kraken has announced the launch of its DeFi Earn product, expanding access to on-chain yield opportunities. The offering is aimed at users who want to get returns from decentralized finance without exiting a centralized exchange environment.
Kraken Expands DeFi Access for Centralized Exchange Users
The DeFi Earn product was made available in most states in the U.S., the EU and Canada on January 26, 2026. Notably, the service excludes New York and Maine because of regulations.
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Meet DeFi Earn, powered by @Veda_labs, @SentoraHQ and @ChaosLabs.
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— Kraken (@krakenfx) January 26, 2026
Accordingly, Kraken is set out to make it easier for mainstream users to access decentralized yields. The product eliminates technical barriers such as wallet management, seed phrases and cross-chain bridging.
Instead, users are able to use DeFi yields directly via the Kraken platform interface. This approach is in line with the growing demand for simplified crypto financial products.
The product works on Veda’s vault infrastructure which has been designed for scalable and transparent yield generation. Initial vaults are designed to support USDC deposits only.
Risk management of these vaults is taken care of by Chaos Labs and Sentora. Both companies manage allocation strategies and protocol exposure.
The funds transferred into the vaults are distributed to established DeFi protocols. Some of these are Aave, Morpho, Sky and Tydro.
Returns are made off of the actual demand of borrowers across these platforms. As a result, yields represent active on-chain lending activity.
Kraken said the product would have potential annualized yields of up to 8%. However, returns may vary according to market conditions.
Importantly, Kraken insisted that DeFi Earn is still non-custodial on the protocol level. Nevertheless, access is given via a central interface.
This structure is a way to bridge centralized convenience of exchange and decentralized mechanics of finance. Consequently, the product is targeting retail users and institutional users.
Yield Structure, Availability, and User Considerations
The DeFi Earn service is available in 48 states in the US, the European Economic Area and Canada. Kraken said that more regions could possibly be added in the future.
Withdrawals in normal liquidity conditions are processed immediately. But there can be temporary delays in protocol congestion.
Kraken revealed there is a 25% fee only for rewards earned. The principal amount deposited is not affected by fees.
Security is a major concern, with funds only interacting with established DeFi protocols. Risk managers take constant monitoring of exposure and liquidity conditions.
Additionally, the vault structure is intended to minimize smart contract and market risks. Managed allocations assist in protocol exposure diversity.
Industry watchers say there is a lot of interest in hybrid CeFi-DeFi products. Such offerings are a blend of regulatory familiarity with on-chain yield potential.
Kraken’s move comes after more scrutiny of crypto yield products began in the global space. As a result, more important have become compliant structures.
The launch is also indicative of wider trends towards institutional-grade DeFi access. Simplified products will potentially attract conservative investors.
Moreover, it provides for offering USDC-based yields which can reduce volatility as compared to returns denominated in tokens. Stablecoin strategies tend to be attractive to conservatives.
However, risks are still associated with the performance of DeFi protocols and market conditions. Users are advised to consider information on yield variability carefully.
Kraken focusing on the transparency around fees, protocols, and risk management partners This clarity is a prerequisite for informed participation.
The company is continuing to increase its product suite beyond traditional trading services. DeFi Earn is another revenue and engagement channel.
Ultimately, the DeFi Earn launch by Kraken is indicative of increasing convergence between centralized and decentralized platforms that use cryptocurrencies. The model can possibly affect future exchange-led DeFi integrations.