Shapella Upgrade: Kraken Unlocks $1B Staked ETH for Americans

The Shanghai-Capella (Shapella) upgrade has taken place, providing users with the ability to withdraw staked ETH. Crypto exchange Kraken launches ETH withdrawal requests for US customers.

Kraken will automatically unlock ETH staked by its US customers

Crypto exchange Binance previously released an update on ETH 2.0 staking withdrawals. Now it’s the turn of the Kraken crypto exchange to make a point. Indeed, the exchange announced having submitted ETH withdrawal requests after the Shapella upgrade. It is expected that he unlock over 551,000 ETH, which represents more than a billion dollars. This was indicated by Nansen’s data.

The amount of ETH to be withdrawn represents more than 65% of the 820,000 ETH currently awaiting withdrawal from the network. However, it is not about Kraken’s total stake which is actually estimated at 1.25 million ETH. This represents $2.5 billion staked on Ethereum.

Furthermore, Kraken finds itself forced to automatically unlock all ether for its US customers due to the regulatory framework. That said, after making the withdrawal requests, he must wait. This is due to the long validator output queue on Ethereum.

It must be said that the Shapella upgrade resulted in a massive influx of withdrawal requests. The total amount of the latter exceeds 1.5 billion dollars, taking into account partial and complete withdrawals.

Kraken’s move to auto-unblock ETH comes sometime after the SEC case. Indeed, the US regulator previously forced the exchange to stop offering crypto staking services. He reproached him for offering these services without first registering them. Even so, Kraken remains the third largest stakeholder on Ethereum. The exchange thus finds itself behind Lido Finance and Coinbase, according to data from Dune Analytics. It should be noted that Kraken’s staking service has streamlined the process of staking on Ethereum. Users can place their bets on the platform by creating validators on their behalf.

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