2024-10-18
Kraken has launched Kraken Wrapped Bitcoin (kBTC), a tokenized version of
Bitcoin that is fully backed and verifiable on the blockchain. The ERC-20 token
is interoperable with Ethereum and OP Mainnet (formerly Optimism), allowing for
seamless use in decentralized applications (DApps). This move aims to enhance
Bitcoin's utility in the DeFi space while ensuring security and transparency.
In a major step forward for Bitcoin's
integration into decentralized finance (DeFi), On October 17, 2024, Kraken has announced the launch of Kraken Bitcoin (kBTC), a fully-backed ERC-20 token
that represents Bitcoin. kBTC allows Bitcoin to seamlessly operate across
networks such as Ethereum and OP Mainnet, while being securely custodied by
Kraken.
kBTC is designed to enhance Bitcoin’s
utility while maintaining its core strengths—security, scarcity, and value as a
store of wealth. Each kBTC token is backed 1:1 by an equivalent amount of
Bitcoin held under Kraken's highly secure custody. Kraken’s clients can
independently verify this through onchain reserves, ensuring complete
transparency.
This development opens up Bitcoin to
decentralized applications (dApps), providing users the ability to use Bitcoin
in DeFi environments. It further integrates Bitcoin into Ethereum and OP
Mainnet, with future plans to extend compatibility to additional networks,
including non-EVM ecosystems.
Kraken emphasizes that kBTC’s launch
builds on its 13+ years of industry-leading custody and security practices. The
kBTC smart contract has undergone a rigorous security audit by Trail of Bits,
reinforcing Kraken’s commitment to trust and transparency. Kraken’s partners
for the Day 1 launch include deBridge, Definitive, Gauntlet, ParaSwap, and
Yearn, promising a strong start for kBTC in the DeFi ecosystem.
By offering kBTC, Kraken aims to push
Bitcoin beyond its traditional boundaries, enabling developers and investors to
tap into Bitcoin’s potential on smart contract platforms. The launch signifies
Kraken's emphasis on expanding Bitcoin's role within crypto ecosystem.
