Kraken has launched kBTC, a new ERC-20 token fully backed by Bitcoin. Each kBTC is secured 1:1 with Bitcoin, stored by Kraken, and verified on-chain. The token bridges Bitcoin with Ethereum and OP Mainnet, with plans for more networks.
Kraken’s blog explained how kBTC builds on Bitcoin’s strengths—security, scarcity, and value storage—and enables its utility in decentralized finance (DeFi). kBTC is used by users in dApps such as Ethereum and OP Mainnet.
Kraken is completely secure for taking on the custodian duties as they, in fact, store the entire BTC reserves. Thus, the token’s collateral can be checked and verified on-chain ledgers through Kraken reserves at any time. This authenticity then leads to users’ confidence.
Kraken custody practices ensure full reserves for kBTC
Security is a top priority. Kraken follows strict custody procedures and operates under Wyoming’s SPDI regulations. An audit by Trail of Bits, a top security firm, reviewed the smart contract behind kBTC. The token passed all tests.
The utility of kBTC doesn’t stop with Ethereum. The exchange plans to extend compatibility to non-EVM networks, opening up more opportunities for developers and investors. Day 1 partners include deBridge, Yearn, and ParaSwap.
The exchange understands that kBTC is allowing Bitcoin to enter new networks. Such an effort additionally increases Bitcoin’s capacity in DeFi while also stamping its existing status as the leading blockchain in the crypto space. The development of kBTC gives more choices for the community while being safe and trustworthy, which is still the goal of the company.
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