This Week in Crypto: Bitcoin-Backed $kBTC, Polkadot's Web2-Web3 Bridge, and More

This week's crypto market developments saw major announcements from leading platforms like Kraken, Coinbase, Polkadot, WazirX, and Bitget Wallet.

Major announcements from leading crypto platforms like Kraken, Coinbase, Polkadot, WazirX, and Bitget Wallet marked this week's crypto market developments.

Kraken introduced $kBTC, a Bitcoin-backed token that will expand its utility across Ethereum and OP Mainnet. Meanwhile, Coinbase doubled the leverage for both retail and institutional traders in its perpetual futures trading.

Polkادت's partnership with Banxa and Polimec aims to bridge Web2 and Web3 by enabling users to invest in blockchain initiatives directly from their credit cards. Additionally, WazirX revealed 240,000 user crypto wallets as part of a court order.

Finally, Bitget Wallet joined forces with 1inch to enhance decentralized trading, reflecting the platform's continuous growth and user adoption. Here are the details of each announcement.

Kraken Launches $kBTC: Bitcoin-Backed Token for Ethereum, OP Mainnet

First up, Kraken crypto exchange introduced $kBTC this week, an ERC-20 token backed 1:1 by Bitcoin that will give holders expanded opportunities to use their Bitcoin across Ethereum and OP Mainnet. Each unit of $kBTC is fully backed by Bitcoin in Kraken’s custody.

This token allows for broader Bitcoin utility in decentralized applications (dApps) and is safeguarded by Kraken Financial, a Wyoming-chartered institution, with regulatory oversight. The $kBTC smart contract was audited by Trail of Bits.

With future compatibility for non-EVM ecosystems and partnerships with platforms like deBridge and Yearn, $kBTC is set to play a key role in the expanding DeFi space.

Coinbase Increases Leverage to 20x for Perpetual Futures Trading

Coinbase has boosted the leverage for perpetual futures trading, now offering up to 20x leverage for both retail and institutional traders that are eligible. This upgrade, shared on Coinbase’s official channels, allows users to maximize their positions and potential profits.

Institutional traders can access the increased leverage via Coinbase International Exchange, while retail traders can utilize Coinbase Advanced. The platform ensures robust risk management, with leverage available across contracts for positions between $1M and $1.5M.

This move aligns with Coinbase’s efforts to attract traders with advanced tools, competing with platforms like Binance and MEXC.

Polkadot Partners with Banxa, Polimec to Bridge Web2, Web3

In another important update, Polkadot announced a collaboration with Banxa and Polimec to simplify user participation in Web3 projects. This partnership allows users to invest in blockchain initiatives using credit cards.

Banxa, a fiat-to-crypto gateway, and Polimec, a decentralized fundraising protocol, enable users to buy tokens like $DOT, $USDC, and $USDT with traditional currencies such as EUR and USD.

This initiative targets making blockchain investments more accessible, particularly for those unfamiliar with crypto, by bridging the gap between Web2 and Web3.

WazirX Discloses 240,000 User Crypto Wallets After Court Order

Leading Indian crypto exchange WazirX disclosed details of around 240,000 user wallets following a court order from Singapore’s High Court. The information is meant to be submitted to the court as part of the restructuring process for Zettai Pte Ltd.

The creditors of Zettai Pte Ltd will also receive this information. Contrary to expectations of fewer wallets, WazirX revealed a vast network of wallet addresses, which the exchange claims is typical for its 4.3 million registered users.

The company emphasized its commitment to transparency, noting that the data release aligns with its goal to be open with its users. WazirX is also consolidating its wallets and plans to introduce Proof of Reserves (POR) with third-party custodians, to enhance trust and transparency.

Bitget Wallet Partners with 1inch to Boost Multichain DEX Trading

Bitget Wallet, a leading non-custodial Web3 provider, partnered this week with DEX aggregator 1inch to enhance its Swap function. This collaboration will offer users better access to decentralized trading with improved pricing and minimal fees.

In Q3 2024, Bitget Wallet saw significant growth, with Swap activity up by 125%, dApp usage rising by 128%, and token transfers increasing by 175%. Africa led the way with a 413% surge in user activity, followed by South Asia and the Middle East.

The integration with 1inch provides real-time access to hundreds of DEXs across 50 blockchains, boosting trading flexibility.