TLDR
- Kraken is the first major exchange to deploy SSV Network’s DVT for Ethereum staking.
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Distributed Validator Technology reduces slashing risk and enhances Ethereum staking.
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Kraken’s use of DVT improves Ethereum validator performance and reliability.
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SSV Network’s technology ensures fault tolerance, geographic diversity, and staking security.
Kraken has become the first major cryptocurrency exchange to fully integrate Distributed Validator Technology (DVT) into its Ethereum staking infrastructure. The exchange announced on August 22, 2025, that it had completed the implementation of SSV Network’s DVT, marking a significant step in improving the reliability, fault tolerance, and security of Ethereum staking.
This new deployment ensures that Kraken’s Ethereum validators are more resilient, offering enhanced uptime and reduced risk of slashing, a penalty that occurs when nodes are unable to perform their duties properly. By using SSV Network’s DVT, Kraken can distribute validator responsibilities across multiple independent operators, ensuring that no single point of failure can disrupt Ethereum’s staking operations.
How Distributed Validator Technology Works
Distributed Validator Technology (DVT) works by splitting a single Ethereum validator key into several secure shares, which are managed by independent operators. These operators work collaboratively to perform validator duties, such as proposing blocks and attesting to network activity.
🚨 Major milestone for Ethereum staking & institutional adoption 🚨
1/ @krakenfx is the first major exchange to run all of its Ethereum validators on Distributed Validator Technology (DVT) with @ssv_network.
This is a first-of-its-kind move. And it sets a new bar for the… pic.twitter.com/xenautovHh
— SSV Network (@ssv_network) August 21, 2025
This system reduces reliance on a single machine or client, making the entire operation more fault-tolerant and robust against hardware or software failures.
SSV Network, which provides the infrastructure for DVT, ensures that validators are more resilient to outages, thus improving overall network security and uptime. This technology has become a standard for Ethereum validators, and Kraken’s full adoption of DVT is a testament to the growing need for scalability and enhanced security in the cryptocurrency space.
Reducing Slashing Risk and Enhancing Security
One of the key benefits of deploying DVT is the reduction in slashing risk. Slashing occurs when Ethereum validators fail to perform their tasks properly or go offline. By distributing validator duties across independent operators and increasing geographic and client diversity, DVT helps mitigate the risk of correlated failures, which can lead to slashing penalties.
Jonathan Marcus, Kraken’s Head of Strategy, Custody, and Staking, emphasized that the full integration of DVT has significantly improved the performance and reliability of Kraken’s Ethereum validators.
The added layer of fault tolerance enhances the overall security of Kraken’s staking service, making it more attractive to institutional clients who require robust and secure infrastructure for staking operations.
Kraken’s Commitment to Technical Excellence and Operational Security
Kraken’s adoption of DVT is part of the company’s broader commitment to maintaining high technical standards and operational security. By using SSV Network’s DVT infrastructure, Kraken is aligning itself with Ethereum’s goal of reducing central points of failure within the network’s consensus layer.
The exchange’s implementation of DVT allows it to offer Ethereum staking services that are both more secure and scalable, further cementing Kraken’s reputation as an institutional-grade staking provider.
Alon Muroch, the Founder of SSV Labs and a core contributor to SSV Network, noted that the integration with Kraken marks a significant milestone in the evolution of Ethereum staking. “Kraken’s deployment of DVT reflects its leadership in the staking space, enabling secure participation while supporting the Ethereum network’s long-term growth,” Muroch stated.
