TLDR:
- The new kBTC, introduced by Kraken, is a Bitcoin ERC-20 token fully backed on a one-to-one basis.
- Compatible with both the Ethereum and OP Mainnet platforms, kBTC broadens its reach in the crypto space.
- Kraken Financial, recognized as a Wyoming-chartered SPDI, safeguards the reserves backing kBTC.
- For enhanced transparency, on-chain verification of reserves is readily accessible.
- Kraken is eyeing future expansion efforts to broaden kBTC’s reach across further networks.
An industry leader in cryptocurrency trading, Kraken takes bold steps with its latest offering. has launched a new product called kBT Focused on enhancing Bitcoin's functionality, kBTC is a Bitcoin-backed ERC-20 token meant for seamless cross-network operations.
This strategic move positions Kraken alongside key players like BitGo’s WBTC, Coinbase’s cbBTC, and 21.co’s 21BTC, intensifying the wrapped Bitcoin competition.
kBTC serves as a Bitcoin representative on Ethereum and OP Mainnet, backed 1:1 by Bitcoin under Kraken’s custody, allowing seamless DeFi engagement while retaining Bitcoin’s value integrity.
Introducing $kBTC Kraken's release of a Bitcoin-backed ERC-20 token, kBTC, emphasizes Bitcoin's value retention with on-chain verification.
More possibilities.
More functionality.
More transparency.Let’s take a closer look ⤵️ pic.twitter.com/VammHbyJKm
— Kraken Pro (@krakenpro) October 17, 2024
Emphasizing transparency, Kraken stresses the significance of on-chain reserve verification services for user confidence.
Held at Kraken Financial, a Wyoming SPD institution, Bitcoin reserves enjoy additional regulatory and security assurances.
When launched, Kraken dedicated 100 Bitcoin, approximately valued at $6.7 million, to initiate kBTC’s supply.
The allocation is set with 80% on Ethereum and 20% on OP Mainnet, and Kraken plans to broaden kBTC’s reach to non-EVM chains.
As the competition heats up in the wrapped Bitcoin arena, Coinbase and 21.co have recently debuted their own offerings, while BitGo’s WBTC maintains its market dominance with a $10 billion valuation.
Mark Greenberg of Kraken emphasizes that blockchain’s future is on-chain, claiming kBTC will energize DeFi adoption and foster broader Bitcoin application.
The launch of kBTC comes amid custody scrutiny of other wrapped Bitcoin products, setting Kraken apart with its focus on transparency.
For instance, WBTC’s custodial relationships sparked concerns, while Kraken underscores its longstanding industry credibility and transparent practices.
To bolster security, Kraken enlisted Trail of Bits for a thorough smart contract audit of the ERC-20 token, ensuring robust defenses against vulnerabilities.
Strategic partnerships with firms like deBridge, Definitive, Gauntlet, ParaSwap, and Yearn enable kBTC to integrate deeply into the DeFi ecosystem.
Despite kBTC's strong prospects, initially, it won’t have spot market availability on Kraken. However, seamless Bitcoin redemption remains an option.
