TL;DR
- Kraken has launched kBTC, a Wrapped Bitcoin designed to facilitate its use in the DeFi ecosystem, backed 1:1 by real Bitcoin.
- The kBTC token is available on the Ethereum and OP Mainnet networks, allowing users to verify on the blockchain the total reserve of Bitcoin that backs it.
- Although there will be no spot markets at launch, users will be able to redeem kBTC for Bitcoin at any time, ensuring a secure environment.
Kraken has officially launched kBTC, a new Wrapped Bitcoin designed to integrate into the DeFi ecosystem.
This ERC-20 token is backed 1:1 by real Bitcoin, meaning that each kBTC is securely held in a segregated wallet within Kraken Financial, a custody solution regulated by the United States.
Introducing $kBTC – an ERC-20 token fully backed 1:1 by Bitcoin, held securely by Kraken and always verifiable onchain.
More possibilities.
More functionality.
More transparency.Let’s take a closer look ⤵️ pic.twitter.com/VammHbyJKm
— Kraken Pro (@krakenpro) October 17, 2024
The platform assures that transparency is fundamental, allowing users to verify on the blockchain that the Bitcoin backing the token is fully reserved. The token is now available on both the Ethereum network and OP Mainnet, formerly known as Optimism.
Kraken’s main objective with this launch is to boost DeFi adoption by making Bitcoin, a cryptocurrency that traditionally does not support decentralized applications, usable in such environments.
Wrapped cryptocurrencies, like kBTC, allow non-native assets to participate in ecosystems based on smart contracts, expanding their use cases beyond simply being a store of value. Among the applications that will support the use of kBTC from its launch are recognized platforms such as Paraswap, Yearn, Gauntlet, deBridge, and others.
Kraken Conducted Rigorous Audits to Ensure Asset Security
Although the kBTC token will not have spot markets at launch, users will be able to redeem it for the underlying Bitcoin at any time. Kraken states that its security infrastructure, backed by over 13 years of industry experience, provides a safe environment for the use of kBTC. The smart contract managing kBTC has undergone rigorous audits by the security firm Trail of Bits.
The launch of kBTC follows the trend adopted by other major platforms, such as BitGo and Coinbase, which have launched their own Wrapped Bitcoin. With this initiative, Kraken aims to strengthen its position in the DeFi economy by facilitating Bitcoin’s access to these markets
