Based on an October 17 assertion, Kraken has launched a brand new wrapped Bitcoin product, kBTC, to faucet into the quickly increasing sector.

kBTC is a totally backed, cross-network suitable ERC-20 token that represents Bitcoin. Every kBTC is backed 1:1 by an equal quantity of Bitcoin, securely saved below Kraken management, and has on-chain reserves accessible for public verification. The token has been audited by safety agency Path of Bits.

Kraken emphasised that the launch of kBTC is consistent with the corporate's mission to speed up the adoption of cryptocurrencies globally. This product leverages the strengths of Bitcoin whereas increasing its use instances to DeFi and different blockchain ecosystems. The corporate's launch companions embrace deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.

Kraken stated:

“kBTC supplies a safe and absolutely backed resolution that unlocks the unparalleled worth and potential of Bitcoin throughout numerous ecosystems.”

kBTC can be utilized throughout decentralized functions (dApps) because of its compatibility with networks similar to Ethereum and OP Mainnet. Kraken additionally plans to increase compatibility to different blockchain ecosystems, together with non-EVM networks.

Based on the newest on-chain knowledge, the overall provide of kBTC is 100 BTC, equal to roughly $6.75 million. Of this, 80 kBTC is in circulation on the Ethereum community and held by 17 wallets. The remaining 20 kBTC resides on the OP mainnet with 11 holders.

WBTC competitors intensifies

Kraken's entry into the wrapped Bitcoin area is a aggressive problem out there because it seeks to problem the dominance of BitGo's Wrapped Bitcoin (WBTC), which presently controls 90% of the market with a market capitalization of $10 billion. It was carried out within the midst of an intensifying scenario.

In September, Coinbase launched its personal wrapped Bitcoin, cbBTC, on prime of Ethereum and Base. Across the similar time, 21.co, the mum or dad firm of 21Shares, launched a wrapped Bitcoin product, 21BTC.

The latest surge in wrapped Bitcoin merchandise started after BitGo introduced a controversial partnership in August with BiT International, a Hong Kong-based firm with ties to Tron founder Justin Solar. .

The transfer raised issues amongst some within the crypto group, notably relating to Solar's involvement. In consequence, DeFi protocols similar to Sky (previously MakerDAO) and Aave are contemplating discontinuing assist for WBTC on their platforms.

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