Kraken's Predictable Yield Play: Up to 6% APY with Fixed Rate Rewards

Kraken has launched Fixed Rate Rewards, a new product on its Kraken Earn platform that lets eligible clients lock in a fixed yield of up to 6% APY on cash and stablecoin balances. This feature is available for users who hold fiat balances in US dollars and euros, as well as the stablecoins USDT, USDC, and USDG.

The product allows clients to choose from four different lockup terms: three, six, twelve, or eighteen months. Longer terms generally come with higher rates, but once a rate is locked in, later market movements will only affect new allocations, not the one already committed.

Rewards compound weekly, and users can opt-in for an auto-renew feature that rolls balances over at maturity using the prevailing rate for the same term. If this option is switched off, funds are simply returned when the term ends.