Introducing $kBTC – an ERC-20 Token Fully Backed 1:1 by Bitcoin

Kraken has unveiled $kBTC, an ERC-20 token backed 1:1 by Bitcoin, reinforcing its position as a leader in security and transparency within the crypto market.

Cryptocurrency exchange Kraken has announced the launch of $kBTC, an ERC-20 token that is fully backed 1:1 by Bitcoin. This token will open up new possibilities for Bitcoin holders, allowing them to utilize their assets across Ethereum and the OP Mainnet.

According to the exchange, each unit of kBTC is securely backed by an equivalent amount of BTC held in Kraken’s custody. This custody solution allows clients to independently verify their holdings onchain at any time, ensuring transparency.

The exchange unveiled this strategic launch to its community via its social media platform, X.

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

“More possibilities.

“More functionality.

“More transparency.

“Let’s take a closer look ⤵️“

The announcement adds that Bitcoin will now be able to gain wider usage within decentralized applications (dApps) on various networks, including Ethereum and OP Mainnet, thanks to kBTC.

“This initiative will enable developers to integrate Bitcoin seamlessly into their applications while investors can quickly diversify their on-chain portfolios.

“Kraken ensures exceptional security for $kBTC through its comprehensive custody procedures. Each token is backed by BTC and stored at Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution. This regulatory framework underpins the security and integrity of kBTC, allowing users to feel confident in their transactions.”

The exchange also noted that the kBTC ERC-20 smart contract has been evaluated by Trail of Bits, a security auditing firm, to ensure its integrity. This thorough audit identifies potential vulnerabilities to provide users with a secure and reliable platform.

“kBTC extends Bitcoin’s functionality by facilitating its use in Ethereum, OP Mainnet, and other platforms. $kBTC provides a secure and fully backed solution for developers and investors with future compatibility planned for additional non-EVM ecosystems.

“Early partnerships with platforms like deBridge and Yearn highlight the token’s potential within the expanding DeFi landscape.

“Kraken is excited to continue presenting innovative solutions that enhance Bitcoin’s role within the broader crypto space. This approach proves that Kraken is focused on the continuous development of innovation paired with top-level security and user transparency.”