Introducing $kBTC – an ERC-20 token fully backed 1:1 by Bitcoin, held securely by Kraken and always verifiable onchain.

Kraken has officially launched kBTC, a new Wrapped Bitcoin designed to integrate into the DeFi ecosystem. This ERC-20 token is backed 1:1 by real Bitcoin

Kraken has officially launched a new Wrapped Bitcoin, known as kBTC, which is set to integrate into the decentralized finance (DeFi) ecosystem. This ERC-20 token is backed 1:1 by real Bitcoin, with each kBTC being held in a segregated wallet by Kraken Financial, a custody solution regulated by the United States.

The platform emphasizes transparency, allowing users to verify on the blockchain that the Bitcoin backing the token is fully reserved. The token is now available on both the Ethereum network and OP Mainnet (formerly Optimism).

Kraken's goal with this launch is to boost DeFi adoption by making Bitcoin, a cryptocurrency that doesn't natively support decentralized applications, usable in such environments.

Wrapped cryptocurrencies, like kBTC, allow non-native assets to participate in ecosystems based on smart contracts, expanding their use cases beyond simply being a store of value. Among the applications that will support the use of kBTC from its launch are Paraswap, Yearn, Gauntlet, deBridge, and more.

While the kBTC token will not have spot markets at launch, users can redeem it for the underlying Bitcoin at any time. Kraken states that its security infrastructure, backed by over 13 years of industry experience, provides a safe environment for the use of kBTC. The smart contract managing kBTC has also undergone rigorous audits by the security firm Trail of Bits.

The launch of kBTC follows the trend adopted by other major platforms, such as BitGo and Coinbase, which have launched their own Wrapped Bitcoin. With this initiative, Kraken aims to strengthen its position in the DeFi economy by facilitating Bitcoin's access to these markets.