On October 17, Kraken introduced Kraken Wrapped Bitcoin (kBTC), a brand new ERC-20 token aimed toward rising Bitcoin’s utility throughout decentralized purposes (dApps) on networks resembling Ethereum and OP Mainnet. Every kBTC token is backed 1:1 by Bitcoin and held in custody at Kraken, permitting customers to have interaction with Bitcoin’s worth inside the decentralized finance (DeFi) ecosystem whereas retaining transparency by on-chain verification of reserves.
Kraken positions kBTC as an answer to carry Bitcoin’s retailer of worth and security measures into broader blockchain ecosystems, notably these working on Ethereum and past. Every kBTC token is securely held at Kraken Monetary, a Wyoming-chartered Particular Objective Depository Establishment (SPDI). The kBTC sensible contract has undergone an audit by the safety agency Path of Bits.
Kraken notes that kBTC provides interoperability, permitting Bitcoin for use throughout totally different networks. The token is designed to initially combine with Ethereum and OP Mainnet, with plans for additional growth to non-EVM chains sooner or later. Kraken says this elevated flexibility makes kBTC a priceless software for builders in search of to construct dApps utilizing Bitcoin or for buyers seeking to entry Bitcoin in on-chain environments.
The alternate permits customers to independently confirm that every kBTC token is absolutely backed by Bitcoin by inspecting Kraken’s on-chain reserves.
Kraken’s launch of kBTC additionally contains partnerships with a number of platforms from Day 1, together with deBridge, Definitive, Gauntlet, ParaSwap, and Yearn, which can incorporate kBTC into their providers. These partnerships are anticipated to assist develop kBTC’s attain and utility throughout DeFi ecosystems.
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