Kraken, one of the largest cryptocurrency exchanges globally, has introduced its own Wrapped Bitcoin token with the ticker kBTC, compatible with networks that support the ERC-20 token standard.
According to a blog post on Thursday (October 17, 2024), the kBTC token is fully backed 1:1 by an equivalent amount of Bitcoin securely held by Kraken’s custodian, Kraken Financial. The smart contract for this token has been audited by Trail of Bits, a leading auditing firm that has worked with other major crypto projects like Worldcoin.
Wrapped Bitcoin (WBTC) is a type of token backed by an underlying asset, namely original Bitcoin. In this mechanism, the base asset is “wrapped” in a digital storage, while new tokens are created for trading on other blockchain platforms. This allows non-native assets to be used across different blockchain networks, creating broader interoperability between them.
“With kBTC, we bring the power of Bitcoin to new networks, backed by the trust and security expertise Kraken has built over the past decade,” Kraken stated in its announcement.
Compatible with Ethereum and OP Mainnet
Initially, kBTC will be supported by several decentralized finance (DeFi) applications, with partners like Kraken, Kraken Wallet, Ethereum, Optimism, Paraswap, Yearn, Gauntlet, deBridge, Definitive, CowSwap, Beefy, Velodrome, Curve, and Morpho. Furthermore, kBTC can be used in decentralized applications (dApps) through interoperability with networks like Ethereum and OP Mainnet.
Kraken added that kBTC will not be available for spot trading at the time of launch. However, users who wish to trade their Bitcoin can redeem kBTC and convert it back to original Bitcoin (BTC).
Kraken’s move to introduce kBTC follows other exchanges that have already launched their own Wrapped Bitcoin tokens. In September, Coinbase launched Coinbase Wrapped Bitcoin (cbBTC) on the Ethereum and Base networks. Coinbase also announced plans to expand native cbBTC support to additional chains.
Follow our Twitter : https://x.com/safubit
Read : Memecoins on the Rise, TRX Struggles to Gain Attention (dinodapps.com)
