Kraken has launched a brand new wrapped Bitcoin product, kBTC, to faucet into the quickly increasing sector, in accordance with an Oct. 17 assertion.
kBTC is a fully-backed, cross-network-compatible ERC-20 token representing Bitcoin. Every kBTC is backed 1:1 by an equal quantity of Bitcoin, saved securely in Kraken’s custody, with on-chain reserves out there for public verification. The token has undergone audits by the safety agency Path of Bits.
Kraken emphasised that the launch of kBTC aligns with its mission to advertise world crypto adoption. The product leverages Bitcoin’s strengths whereas increasing its use circumstances into DeFi and different blockchain ecosystems. The agency’s launch companions embrace deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
Kraken said:
“kBTC supplies a safe, fully-backed answer that unlocks Bitcoin’s unparalleled worth and potential throughout a various vary of ecosystems.”
kBTC can be utilized throughout decentralized functions (dApps) by way of its compatibility with networks like Ethereum and OP Mainnet. Kraken additionally plans to increase its compatibility to different blockchain ecosystems, together with non-EVM networks.
The most recent on-chain knowledge exhibits the entire provide of kBTC is 100 BTC, valued at roughly $6.75 million. Of this, 80 kBTC is circulating on the Ethereum community, held by 17 wallets, whereas the remaining 20 kBTC resides on the OP Mainnet, with 11 holders.
Rising competitors for WBTC
Kraken’s entry into the wrapped Bitcoin area comes amid intensifying competitors on this market, which is trying to problem the dominance of BitGo’s Wrapped Bitcoin (WBTC), which presently controls 90% of the market with a $10 billion market capitalization.
In September, Coinbase launched its personal wrapped Bitcoin, cbBTC, on Ethereum and Base. Across the identical time, 21.co, the mum or dad firm of 21Shares, launched its wrapped Bitcoin product, 21BTC.
The current surge in wrapped Bitcoin choices started after BitGo introduced a controversial partnership with Hong Kong-based BiT World in August, a agency related to Tron founder Justin Solar.
The transfer induced concern amongst some within the crypto neighborhood, notably relating to Solar’s involvement. In consequence, DeFi protocols like Sky (previously MakerDAO) and Aave are contemplating discontinuing help for WBTC on their platforms.
