When you hear “cryptocurrency exchange,” you probably imagine traders staring at candlestick charts at 3 a.m., managing dozens of open positions and drinking their third cup of coffee in a row. Kraken has been strengthening its position in this niche over the years.
But in 2025 and 2026, the platform has undergone a transformation that also makes it attractive to those who bought BTC and just… hold on. Relax. With conviction. Don’t panic.
Kraken in numbers – a foundation you can trust
Before we move on to specific functions, it is worth understanding what we are dealing with. Kraken is not just another startup that appeared in a previous bull run. The platform has been operating continuously since 2011 and has not suffered a single serious hack for over a decade. In the world of cryptocurrencies, where stock exchanges are dropping like flies, this is a statistic of the value of gold.
A few numbers that speak for themselves:
- Year of establishment: 2011 – 14+ years without a serious burglary
- Users: over 13 million worldwide
- Assets on the platform: USD 59.3 billion (Q3 2025)
- Supported cryptocurrencies: over 600
- Transaction volume: USD 576.8 billion in Q3 2025
- Valuation before the planned IPO: USD 20 billion
Kraken confidentially filed a Form S-1 with the SEC in November 2025, targeting an early 2026 IPO at a valuation of $20 billion, with backing from institutions such as Citadel Securities and Jane Street. The company raised $800 million in a funding round. This is not a platform that may disappear from the market in a year.
The key question is: if you’re not actively trading – what can Kraken actually do for you? It turns out quite a lot. And in a way that should be of interest to anyone who wants to build a long-term position.
Staking – let your crypto work on its own
HODLing is a strategy based on a simple assumption: you believe in long-term growth in the value of assets and you do not intend to sell them in the near future. So the logical question is: if you’re holding it anyway, why not make money from it?
Kraken offers three staking models to suit different needs.
Flexible Staking – liquidity without compromise
You stake assets but retain the ability to withdraw them at any time without a grace period. Perfect for HODLers who want to make money but don’t want to commit. Prizes are paid weekly.
Bonded Staking – higher rewards, higher commitment
Higher APR in exchange for a specific asset lock-in period. Suitable for those who really hold for the long term and do not plan to move positions for weeks or months.
Auto-Earn – staking without thinking
Crypto in your wallet automatically goes to staking. You literally don’t have to do anything – just keep your assets on Kraken and Auto-Earn will take care of the rest.
The platform supports staking of over 24 assets, and rewards are paid twice a week. Importantly – Kraken offers transparent commissions on rewards (usually 7.25%, up to 15% for Ethereum) and clearly published APR. No hidden fees, no juggling commission structures like some competitors.
Example rates of return:
- ETH – approx. 4-6% APR (Bonded/Flexible)
- SALT – approx. 6% APR
- REGARDING – approx. 10-14% APR (unbonding period ~28 days)
- ADA – approx. 3-5% APR
- ATOM – up to 23% APR (unbonding period 21 days)
- BTC – rewards in BABY tokens (Babylon Protocol)
Bitcoin staking – it’s not a joke
In June 2025, Kraken introduced something that for years seemed impossible: Bitcoin staking. The mechanism based on the Babylon protocol allows you to stake BTC without bridging, wrapping or lending it to anyone. BTC never leaves the Bitcoin blockchain – it is locked in a vault on the native chain and delegated to secure the Proof-of-Stake network. Rewards are paid in the BABY token. The unbonding period is approximately 7 days.
A large portion of Bitcoin has been sitting idle on the exchange for years, generating zero returns to its owners. Now he doesn’t have to.
Flexline – borrow, don’t sell
February 2026 brought HODLers a gift that many had been waiting for: Kraken Flexline. It’s a cryptocurrency-backed lending product that solves one of the biggest headaches for long-term holders.
The scenario is probably familiar to you: you have been holding ETH or BTC for years, you are in solid profit, but suddenly you need cash for a specific purpose – renovation, investment, unforeseen expenses. The classic options are unattractive: sell crypto and pay tax on the gain (and lose exposure), or seek a loan in DeFi with the risk of smart contracts and variable interest rates.
Flexline proposes a third way. You pledge your cryptocurrencies to Kraken Pro as collateral and receive your crypto or stablecoins instantly. The interest rate is fixed and ranges from 10-25% APR. Loan terms range from 2 days to 2 years. The initiation fee is 0.5%. You can invest the funds immediately on Kraken or withdraw them outside the platform. Your position in BTC or ETH remains intact.
Important disclaimer: Flexline is only available to Kraken Pro users. The product is not available in the US, UK, Australia, Canada, India, Brazil, New Zealand, Switzerland and the UAE. If the conditions for maintaining security are violated, the platform may be liquidated. A fixed interest rate does not change the fact that it is still a loan with the risk of losing the security.
Security and transparency – not empty words
In an ecosystem where the slogan “SAFU” has become a meme after subsequent exchanges turned out to be not entirely safe, Kraken stands out with a real track record.
🐙Zero serious break-ins since 2011. In over 14 years of operation, Kraken has not recorded any serious security breach leading to the loss of customer funds. In the crypto industry, this is a masterclass record.
🐙Proof of Reserves – first and consistent. Kraken was the first cryptocurrency exchange to conduct a Proof of Reserves audit. Audits are regular, cryptographic and verifiable. The 1:1 asset coverage ratio is mathematically proven, not declared.
🐙Regulatory licenses in key jurisdictions. The platform has licenses, among others: FinCEN (USA), FCA (UK), BaFin (Germany). In March 2025, the SEC dropped its case against Kraken. The regulatory storm cloud that had been weighing over the platform disappeared.
🐙Cold storage and multi-sig. The vast majority of customer assets are stored in cold storage with key separation. Continuous 24/7 monitoring, slashing insurance for stakers, anomaly detection systems.
xStocks and shares – crypto on TradFi steroids
Kraken consistently pursues the strategy of building a platform where you can hold and manage virtually any asset – cryptocurrencies, stocks, futures – from one account. For a HODLer who wants to diversify their portfolio without opening a separate brokerage account, this is an increasingly interesting proposition.
In April 2025, Kraken launched trading in over 11,000 US-listed stocks and ETFs – commission-free. It then acquired Backed Finance, the company behind xStocks: tokenized shares of companies such as Apple, Nvidia and Tesla, operating on the Solana, BNB and Tron blockchains, available 24/7 to non-US investors. The total volume of xStocks on Kraken exceeded USD 5 billion.
In addition, there is the acquisition of NinjaTrader for USD 1.5 billion – the largest transaction combining crypto with traditional finance in the history of the industry. Kraken thus acquired one of the leading futures trading platforms in the US, with almost 2 million users.
Kraken is no longer a cryptocurrency exchange, which also has several other functions. It has become a financial platform that started with crypto and is systematically absorbing subsequent market segments.
Kraken Pro vs. Kraken – which interface for whom?
One of the most common pitfalls for new users is confusing the two different platform interfaces. Here’s a quick map:
| Function | Kraken (basic) | Kraken Pro |
| Buying/selling crypto | ✓ | ✓ |
| Staking (Bonded) | ✓ | ✓ |
| Auto-Earn | ✓ | ✓ |
| Flexible Staking | — | ✓ |
| Flexline (loans) | — | ✓ |
| Stock/ETF trading | — | ✓ |
| Leverage (up to 5×) | — | ✓ |
| Futures (up to 50×) | — | ✓ |
| Lower transaction fees | — | ✓ |
Simple bottom line: if you’re just using Kraken’s core interface, you’re leaving a lot of value on the table. Upgrading to Kraken Pro is free, takes just a moment and unlocks flexible staking, Flexline and lower fees.
Is Kraken the right place for your HODL?
An honest answer requires taking into account several important contexts.
In Kraken’s favor: an impeccable security record, regular Proof of Reserves, licenses in key jurisdictions, a wide selection of staking assets with transparent rates of return, new products like Flexline for HODLers needing liquidity without selling, and expansion into equities and tokenized real assets.
What’s worth keeping in mind: keeping cryptocurrencies on an exchange – even one as safe as Kraken – carries counterparty risk. Staking involves unbonding periods during which you cannot freely dispose of the assets. Flexline, although transparent, is still leveraged with the risk of liquidation. Product availability varies by jurisdiction – some options are not available in every country.
Kraken suits HODLers who understand that “not your keys, not your crypto” is the rule for maximalists of independent custody of assets, but they prefer the convenience of a managed platform with real security. However, if you want absolute sovereignty over your BTC or other assets – consider a combination of a cold wallet for the main position and Kraken for the active part of the wallet.
The most sensible strategy for HODLer in 2026? Keep 70-80% of your position in your hardware wallet and use Kraken’s capabilities for the rest – collecting rewards from staking, having access to Flexline in case you need liquidity, and looking at stocks without opening a separate brokerage account.
Kraken, an exchange that grows with your wallet
For people who buy and hold, the value proposition is clear: earn passively with staking (including BTC!), benefit from liquidity without selling with Flexline, diversify your portfolio with stocks and tokenized assets – all from one place, with a 14-year security track record and regulations that make the platform a reliable partner for years.
Active trading? Optional. Panic selling during a bear market? Not necessary. Kraken says more and more clearly to HODLers: we are here for you, even if you never open a candlestick chart 😉
Disclaimer: The above article is for informational and educational purposes only. It does not constitute investment, financial or legal advice. Investing in cryptocurrencies involves a high risk of losing capital.
