Kraken Launches kBTC Wrapped Bitcoin
Crypto exchange Kraken has launched a new wrapped bitcoin product, kBTC, now live on Ethereum and OP Mainnet, to compete with other tokenized BTC alternatives like WBTC and cbBTC.
What's the scoop?
- Cross-Network Compatibility: kBTC is an ERC-20 token backed 1:1 by BTC custodied at Kraken Financial.
- Onchain Reserves: Kraken disclosed a reserve address showing a balance of 100 BTC, corresponding to an 80 kBTC supply on Ethereum and 20 kBTC on OP Mainnet.
- Day One Partners: Initial partners include platforms like deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
- Future Plans: Kraken plans to extend compatibility to non-EVM networks.
Bankless Take:
Following Coinbase’s recent cbBTC introduction, Kraken now joins the fight against WBTC’s market share. While Kraken’s 13-year reputation and transparency will likely prove a strong selling point, especially considering the security concerns surrounding WBTC’s custodian, BitGo, WBTC’s dominance may still prove harder to chip away at than initially expected.
Introducing $kBTC – an ERC-20 token fully backed 1:1 by Bitcoin, held securely by Kraken and always verifiable onchain.
— Kraken Pro (@krakenpro) October 17, 2024
More possibilities.
More functionality.
More transparency.
Let’s take a closer look ⤵️ pic.twitter.com/VammHbyJKm