Kraken launches DeFi Earn to simplify access to onchain yields
Users can convert funds to USD Coin (USDC) where necessary and allocate them to audited vaults operated by Veda
Kraken has introduced DeFi Earn, a new feature enabling users to deposit cash or supported stablecoins and earn onchain yields directly through the platform, without the need for external wallets or applications.
According to Kraken, users can convert funds to USD Coin (USDC) where necessary and allocate them to audited vaults operated by Veda.
These vaults supply liquidity to decentralised lending protocols, with all onchain actions processed in the background.
“DeFi Earn is more than a new feature. It is the bridge between the promise of decentralised finance and the usability people expect from modern financial apps,” said John Zettler, Kraken’s Director of Earn Products.
“It lets your money work for you in real time, securely and transparently, without the complexity that has defined DeFi until now.”
Sun Raghupathi, Co-Founder of Veda, added: “We are proud to power the onchain infrastructure behind DeFi Earn and to support Kraken in delivering a seamless experience.
As traditional places to earn rewards flatten, onchain markets continue to offer higher variable APYs. DeFi Earn highlights market-leading rates that come from real lending activity. The rewards are grounded in actual market demand for capital.”
At launch, Kraken users can choose from three risk-managed USDC vaults: the Balanced Yield and Boosted Yield USDC vaults, both managed by Chaos Labs, and the Advanced Strategies USDC Vault, managed by Sentora.
Vaults are administered by Veda and overseen by professional risk teams. Withdrawals are typically processed instantly, though the company said brief delays may occur if liquidity is constrained.
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DeFi Earn is available in 48 U.S. states, excluding New York and Maine, as well as in Canada and the European Economic Area. Supported deposits include cash and major stablecoins. Kraken stated that the feature may offer up to 8 per cent in rewards as of 21 January 2026, though rates are variable and subject to market conditions.
To begin using DeFi Earn, users log in to Kraken, navigate to the Earn section, choose DeFi Earn, select an amount and preferred risk strategy, review the terms, and begin earning automatically.
The Recap
- Kraken launches DeFi Earn to provide onchain yields
- Users can earn up to 8% APY on deposits
- Available in 48 U.S. states, Canada and EEA
