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Kraken has launched a brand new wrapped Bitcoin product, kBTC, to faucet into the quickly increasing sector, in keeping 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 obtainable 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 international crypto adoption. The product leverages Bitcoin’s strengths whereas increasing its use circumstances into DeFi and different blockchain ecosystems. The agency’s launch companions embody deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
Kraken acknowledged:
“kBTC offers 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) via 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 information exhibits the overall 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 house comes amid intensifying competitors on this market, which is trying to problem the dominance of BitGo’s Wrapped Bitcoin (WBTC), which at present 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 mother or father firm of 21Shares, launched its wrapped Bitcoin product, 21BTC.
The latest surge in wrapped Bitcoin choices started after BitGo introduced a controversial partnership with Hong Kong-based BiT International in August, a agency linked to Tron founder Justin Solar.
The transfer brought about concern amongst some within the crypto group, significantly concerning Solar’s involvement. In consequence, DeFi protocols like Sky (previously MakerDAO) and Aave are contemplating discontinuing help for WBTC on their platforms.