Manage Your Crypto Investments Easily with Brighty
Kraken introduces kBTC, a new wrapped Bitcoin product, to tap into the growing crypto sector, as per an Oct. 17 statement.
kBTC is a fully-backed, cross-network-compatible ERC-20 token representing Bitcoin. Each kBTC is backed 1:1 by an equivalent amount of Bitcoin, stored securely in Kraken’s custody, with on-chain reserves available for public verification. The token has undergone audits by the security firm Trail of Bits.
Kraken’s launch of kBTC aligns with its mission to promote global crypto adoption and expand Bitcoin’s use cases into DeFi and other blockchain ecosystems. The firm’s launch partners include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
Kraken stated:
“kBTC provides a secure, fully-backed solution that unlocks Bitcoin’s unparalleled value and potential across a diverse range of ecosystems.”
kBTC can be used in decentralized applications (dApps) as it is compatible with networks like Ethereum and OP Mainnet. Kraken plans to extend compatibility to other blockchain ecosystems as well.
The total supply of kBTC currently stands at 100 BTC, valued at approximately $6.75 million. 80 kBTC is circulating on the Ethereum network, with 17 wallets holding it, while the remaining 20 kBTC resides on the OP Mainnet, held by 11 holders.
Rising Competition in Wrapped Bitcoin Market
Kraken’s entry into the wrapped Bitcoin arena comes amidst increasing competition, challenging BitGo’s Wrapped Bitcoin (WBTC), which dominates with a $10 billion market cap.
In September, Coinbase launched its wrapped Bitcoin, cbBTC, and 21Shares released its own wrapped Bitcoin product, 21BTC. This surge in offerings followed BitGo’s partnership with BiT Global, linked to Justin Sun, causing concern within the crypto community.
DeFi protocols like Sky and Aave are considering discontinuing support for WBTC due to this partnership. The market for wrapped Bitcoin products is evolving rapidly with new entrants and changing dynamics.
