365Crypto
Crypto exchange Kraken has launched its own wrapped bitcoin token called kBTC. This new token will be available on both Ethereum and the OP Mainnet. Wrapped bitcoin tokens allow bitcoin to be used in decentralized finance (DeFi) platforms, enabling trading, lending, and borrowing.
How kBTC Works
Kraken’s kBTC will be backed 1:1 by actual bitcoin, stored in Kraken Financial, a regulated custody service. To ensure transparency, Kraken will publicly share the wallet address holding the bitcoin reserves.
Wrapped bitcoin tokens, like kBTC, let investors use bitcoin on other blockchains. Kraken isn’t the only one launching such a token—Coinbase recently introduced its own wrapped bitcoin product.
Partnerships and Support
At launch, kBTC will be supported by multiple DeFi platforms, including Paraswap, Yearn, Curve, and Morpho. However, there won’t be any spot markets for trading kBTC immediately, but users can redeem the token for regular bitcoin if needed.
