Krak Launches Bitcoin Vaults Offering Up to 2.5% APY

New Product Details

Krak introduced Bitcoin Vaults, a yield-bearing custody product that lets Bitcoin holders generate returns denominated in BTC without sacrificing price exposure or liquidity. The Vaults offer up to 2.5% variable APY, impose no minimum deposit, require no lock-up period, and allow withdrawals after a 5-day holding window. Deposits begin accruing immediately upon deposit.

Portfolio Expansion and Infrastructure

The BTC Vaults expand Krak's existing yield offerings beyond stablecoins. The platform previously offered USDC Vaults earning up to 8% APY on the same underlying infrastructure. Krak said the combined suite now spans both sides of a portfolio: stability-focused yield through dollar-denominated assets and conviction-focused yield through Bitcoin holdings. The platform currently manages over $180 million in deposits across 38,000 users.

Distribution Model and Flywheel

Krak markets the Vaults as the final stage of a three-part Bitcoin accumulation flow: users earn 2% cashback in BTC on card purchases, receive 1% of salary matched in Bitcoin via a Salary Match feature, then deposit both into Vaults to compound the yields. BTC Vaults are available now in the US (excluding New York and Maine), the European Economic Area, and Canada.

Why It Matters

For Traders

Bitcoin-denominated yield products create an alternative to selling spot holdings for stablecoin farming, though variable APY rates merit close monitoring for sustainability.

For Investors

Yield infrastructure around Bitcoin holdings broadens the use cases for long-term holders beyond price appreciation, though custodial yield always carries counterparty risk.

For Builders

Growing Bitcoin-native yield products on centralized platforms signal demand for layer that sits between self-custody and traditional finance, shaping infrastructure prioritization.