Kraken Enables Restaking Feature for Non-US Customers

Crypto exchange Kraken has launched Ether (ETH) restaking through the EigenLayer protocol exclusively for non-US users. This new feature enables users to earn additional rewards on their staked Ether by supporting the security of decentralized applications (dApps) operating on the EigenLayer network.

The launch of Ethereum restaking follows Kraken’s recent European expansion. Last month, it acquired the Netherlands-based crypto broker Coin Meester B.V. (BCM).

What Is Restaking?

Restaking allows users to extend the utility of their staked assets, providing security to multiple protocols without having to unstake from the original blockchain. This approach can enhance overall yield for investors while strengthening the broader ecosystem.

The introduction of restaking on Kraken reflects the industry’s ongoing adoption of the feature. According to on-chain data, the total value locked in liquid restaking tokens has surged over 3000% this year, totaling around $11 billion. This expansion indicates a rising interest and adoption of restaking among investors.

Kraken now aims to make restaking more accessible by simplifying the process. According to Kraken’s global head of asset growth, Mark Greenberg, the integration “significantly lowers” entry barriers, as most users are already accustomed to centralized exchanges.

As part of the development, Kraken’s subsidiary, Staked, will act as the validator for ETH restaked on the platform. Staked, a leading EigenLayer operator, primarily serves institutional clients, allowing Kraken to draw on Staked’s expertise in restaking.

Restriction for US-Based Customers

Participants in Kraken’s restaking feature can choose to hold their rewards on the exchange or convert them to fiat or other cryptocurrencies, offering flexibility in managing their earnings. However, this service is restricted in certain regions, including the United States, where “geographic restrictions apply,” Kraken explains.

The rollout of Ether restaking on Kraken aligns with recent updates in the EigenLayer ecosystem. The Eigen Foundation recently unlocked the trading of its native token, EIGEN, following its airdrop. The token became available for trading on September 30, with major exchanges like Binance offering it in pairs with BTC and USDT.