On October 17, Kraken, a cryptocurrency exchange, officially unveiled a new cryptocurrency known as Kraken Wrapped Bitcoin (kBTC). By enabling its usage in distributed apps (DApps), this unique token aims to enhance Bitcoin’s position as the “epicenter of crypto.”
Kraken’s custody of Bitcoin backs the kBTC token one-to-one. This ensures that the value of kBTC closely mirrors the original Bitcoin, with the exchange holding an equivalent Bitcoin for every kBTC generated.
Designed as an ERC-20 currency, kBTC is interoperable with Op Mainnet and Ethereum, among other networks. This compatibility lets developers maximize Bitcoin’s features on other platforms, thereby improving its usage possibilities.
Kraken underlines that the arrival of kBTC not only provides the capability of Bitcoin to fresh networks but also encourages the continuous innovation in the crypto sector. Known for its commitment to security and trust, Kraken aims to uphold this reputation with this new product.
Kraken has made it simple for consumers to confirm the Bitcoin behind kBTC, therefore ensuring openness. Along with the custody address for the Bitcoin, the business has set on-chain data linkages for consumers to examine the reserves, including links to the smart contracts on both Ethereum and OP Mainnet.
Similar to kBTC, wrapped tokens play a crucial role in enhancing cross-chain capability by enabling the utilization of non-native assets on other blockchain systems. For instance, kBTC lets Bitcoin users interact with DeFi apps that might not directly support Bitcoin, therefore extending the range of possibilities available to them with regard to their assets.
Kraken will not provide kBTC spot markets at launch, but customers may redeem their kBTC for actual Bitcoin anytime they so choose. Well-known DeFi apps like Yearn, Curve, and Paraswap will also include KBTC, enabling users to trade, lend, or invest their Bitcoin creatively.
By means of kBTC, Kraken upholds its leadership in the field of cryptocurrency exchanges, dedicated to maximizing Bitcoin’s use while preserving the best criteria of security and dependability. This action emphasizes the exchange’s commitment to investigating fresh prospects in the changing landscape of distributed money.
