Kraken, one of the largest crypto exchanges, has launched kBTC, a wrapped Bitcoin (BTC) token.
Kraken Launches Wrapped Bitcoin Token kBTC on Ethereum and OP Mainnet
The token will initially be available on Ethereum and OP Mainnet and will be backed 1:1 by Bitcoin, which is held in custody by Kraken.
Wrapped tokens like kBTC allow cryptocurrencies like Bitcoin and Ethereum (ETH) to be used in decentralized finance (DeFi) ecosystems that typically run on other blockchains.
With kBTC, Kraken aims to accelerate DeFi adoption by enabling BTC holders to trade, lend, and borrow on DeFi platforms without having to sell their assets.
Mark Greenberg, Kraken’s head of global asset growth and management, commented:
“We believe in the future of onchain, and DeFi represents a significant piece of that opportunity. kBTC builds on Kraken’s long history of seamless user experience and top-tier security, bringing DeFi to new users and driving adoption of decentralized applications.”
Kraken emphasized that the Bitcoin backing kBTC will be held in a segregated wallet by the exchange’s US-regulated qualified custody solution, Kraken Financial.
The wallet address will be public, allowing users to verify that all BTC is fully backed and in reserve.
The minimum deposit size for kBTC on Ethereum and Optimism will be 0.00026 BTC (approximately $15 assuming BTC is trading at $60,000).
*This is not investment advice.
