Kraken Launches Wrapped Bitcoin, Now Accessible on Ethereum and OP Mainnet
In Brief
Kraken has rolled out kBTC, a new ERC-20 token that is pegged to Bitcoin at a one-to-one ratio, securely stored in the exchange's custody.
Cryptocurrency exchange Kraken Kraken has introduced kBTC, an ERC-20 token that is one-to-one backed by Bitcoin and entrusted to Kraken's secure custody.
Users can easily verify the reserves behind kBTC by checking the on-chain data whenever they wish. This verification process is accessible for smart contracts on both OP Mainnet and Ethereum, as well as the Bitcoin custody address.
The kBTC token is designed to be compatible with decentralized applications (dApps) and functions seamlessly across various platforms such as Ethereum and OP Mainnet. Kraken’s adherence to full-reserve policies and regulated practices guarantees a robust level of security and confidence. Each kBTC is equivalently supported by a Bitcoin held securely at Kraken Financial, which is a Special Purpose Depository Institution (SPDI) chartered in Wyoming.
In addition, a third-party security audit of the kBTC ERC-20 smart contract, carried out by Trail of Bits, has validated the token's safety. The audit involved a thorough inspection of the code and client framework to identify and mitigate any potential vulnerabilities.
kBTC Facilitates Bitcoin Integration Within DApps and Provides Safeguarded Portfolio Diversification
kBTC is poised to widen Bitcoin’s utility by enabling its smooth integration into Ethereum, OP Mainnet, and other blockchain ecosystems, with upcoming enhancements targeting non-EVM environments. This paves the way for developers to seamlessly integrate Bitcoin into their dApps while giving investors a safe, fully-backed means to diversify their on-chain investments. Initial partners for kBTC include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
Kraken stands as one of the top cryptocurrency exchanges, allowing trading against fiat currencies while offering derivatives and futures services. As per CoinMarketCap, it is ranked the seventh-largest exchange globally, boasting an impressive daily trading volume averaging around $1 billion. Recently, it has introduced launched Ethereum restaking through EigenLayer, enabling users to secure dApps using staked ETH while earning additional staking rewards.
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