Kraken Introduces Wrapped Bitcoin, Now Available On Ethereum And OP Mainnet
In Brief
Kraken introduced Kraken Bitcoin, kBTC, an ERC-20 token backed one-to-one by Bitcoin and securely held in exchange’s custody.
Cryptocurrency exchange Kraken introduced Kraken Bitcoin (kBTC), an ERC-20 token backed one-to-one by Bitcoin and securely held in Kraken’s custody.
Users have the ability to independently verify the reserves backing kBTC by inspecting the on-chain data at any time. This verification is available for both OP Mainnet and Ethereum smart contracts, along with the Bitcoin custody address.
The kBTC is a wrapped token compatible with decentralized applications (dApps) and can operate across networks like Ethereum and OP Mainnet. The platform’s commitment to full-reserve practices and its regulated framework offers a high level of security and trust. Each kBTC token is backed by an equal amount of Bitcoin held at Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution (SPDI).
Furthermore, an external security audit of the kBTC ERC-20 smart contract, conducted by the firm Trail of Bits, confirmed the token’s security. It reviewed the codebase and client architecture to detect and resolve any potential vulnerabilities.
kBTC Enables Bitcoin Integration In DApps And Secure Portfolio Diversification
kBTC is set to enhance Bitcoin’s functionality by enabling seamless integration into Ethereum, OP Mainnet, and other blockchain networks, with future plans to expand compatibility to non-EVM ecosystems. This provides developers with a way to incorporate Bitcoin into dApps and offers investors a secure, fully-backed solution to diversify their onchain portfolios. Launch partners for kBTC include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
Kraken, one of the leading cryptocurrency exchanges, supports trading against fiat currencies and offers cryptocurrency derivatives and futures services. According to CoinMarketCap, it ranks as the seventh-largest global exchange, with an average daily trading volume of around $1 billion. Recently, it has introduced Ethereum restaking via EigenLayer, allowing users to secure dApps with staked ETH while earning extra staking rewards.
Disclaimer
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
