Kraken has launched a brand new wrapped Bitcoin product, kBTC, to faucet into this quickly increasing sector, in accordance with an October 17 launch.
kBTC is a completely supported, cross-network suitable ERC-20 token representing Bitcoin. Every kBTC is backed 1:1 by an equal quantity of Bitcoin, saved securely within the custody of Kraken, with on-chain reserves accessible for public verification. The token has been topic to audits by safety firm Path of Bits.
Kraken highlighted that the launch of kBTC aligns with its mission to advertise world crypto adoption. The product leverages the strengths of Bitcoin whereas extending its use circumstances to DeFi and different blockchain ecosystems. The corporate's launch companions embrace deBridge, Definitive, Gauntlet, ParaSwap and Yearn.
Kraken stated:
“kBTC supplies a safe, totally supported answer that unlocks the unparalleled worth and potential of Bitcoin throughout a variety of ecosystems.”
kBTC can be utilized in decentralized functions (dApps) due to its compatibility with networks like Ethereum and OP Mainnet. Kraken additionally plans to develop its compatibility to different blockchain ecosystems, together with non-EVM networks.
The most recent on-chain knowledge reveals that the overall kBTC provide is 100 BTC, valued at roughly $6.75 million. Of this quantity, 80 kBTC circulates 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 area comes amid intensifying competitors on this market, which seeks to problem the dominance of BitGo's Wrapped Bitcoin (WBTC), which presently controls 90% of the market with capitalization inventory market of 10 billion {dollars}.
In September, Coinbase launched its personal wrapped Bitcoin, cbBTC, on Ethereum and Base. Across the similar time, 21.co, the father or mother firm of 21Shares, launched its wrapped Bitcoin product, 21BTC.
The latest surge in wrapped Bitcoin choices started after BitGo in August introduced a controversial partnership with Hong Kong-based BiT World, an organization linked to Tron founder Justin Solar.
The transfer has sparked considerations amongst some within the crypto neighborhood, notably relating to Solar's involvement. In consequence, DeFi protocols like Sky (previously MakerDAO) and Aave are contemplating ending assist for WBTC on their platforms.
