On October 17, Kraken announced Kraken Wrapped Bitcoin (kBTC), a new ERC-20 token aimed at increasing the utility of Bitcoin across decentralized applications (dApps) on networks such as Ethereum and OP mainnet. has been introduced. Each kBTC token is backed 1:1 by Bitcoin and stored on Kraken, allowing users to trade Bitcoin within the decentralized finance (DeFi) ecosystem while maintaining transparency through on-chain verification of their reserves. can address the value of
Kraken positions kBTC as a solution that brings Bitcoin's store of value and security features to the broader blockchain ecosystem, particularly those operating on Ethereum and beyond. Each kBTC token is securely stored at Kraken Financial, a Wyoming State Chartered Special Purpose Depository Institution (SPDI). The kBTC smart contract has been audited by security firm Trail of Bits.
Kraken points out that kBTC provides interoperability, allowing Bitcoin to be used across different networks. The token is initially designed to integrate with Ethereum and OP mainnet, with plans to further expand to non-EVM chains in the future. Kraken said this increased flexibility makes kBTC a valuable tool for developers looking to build dApps using Bitcoin, as well as investors looking to access Bitcoin in an on-chain environment. states.
The exchange allows users to independently verify that each kBTC token is fully backed by Bitcoin by inspecting Kraken's on-chain reserves.
Kraken's kBTC launch also includes partnerships with several platforms including deBridge, Definitive, Gauntlet, ParaSwap, and yearn, which will incorporate kBTC into their services from day one. These partnerships are expected to help expand the reach and utility of kBTC across the DeFi ecosystem.
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