Kraken Introduces kBTC: Taking Bitcoin to the Next Level of Cross-Chain Possibilities
Date: 2024-10-18 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Kraken is committed to finding innovative solutions to accelerate global adoption of cryptocurrency. kBTC builds on Bitcoin’s core features of security, limited supply, and value-added value, and extends its functionality to enable use in decentralized finance (DeFi) and beyond.
What is kBTC?
kBTC is an ERC-20 token that is fully backed 1:1 by Bitcoin, held by Kraken. Any customer can verify this by viewing the reserves on the blockchain.
The kBTC token can be integrated into decentralized applications (dApps) thanks to its compatibility with the Ethereum and OP Mainnet (formerly Optimism) networks.
Why kBTC?
Kraken has always emphasized Bitcoin as a critical digital asset due to its resilience and innovation. The introduction of kBTC not only provides access to DeFi through tokenized Bitcoin, but also builds on Kraken’s 13+ years of experience in cryptocurrency custody. This means that kBTC is always fully backed and securely stored, ensuring its availability.
Kraken’s Transparency and Security
Kraken employs a fully backed practice, ensuring a high degree of security and trust. Each kBTC token is backed by an equivalent amount of Bitcoin stored at Kraken Financial, a Wyoming-licensed institution.
Don’t take our word for it, check it out!
Kraken allows users to verify the security and security of kBTC for themselves. You can verify the reserve data using:
1 OP Mainnet Smart Contract
2 ETH Smart Contract
3 BTC Storage Addresses
Security and transparency are key aspects of kBTC. The kBTC smart contract has been independently verified by Trail of Bits, ensuring that potential vulnerabilities are identified and fixed.
Benefits of Using kBTC
With kBTC, Bitcoin is becoming much more accessible. The token integrates seamlessly with Ethereum and OP Mainnet networks, with support for other networks, including non-EVM ecosystems, planned for the future.
Whether you are a developer looking to integrate Bitcoin into your dApps or an investor looking to diversify your portfolio, kBTC provides a secure solution for using Bitcoin across multiple ecosystems. Early launch partners include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
Kraken and the Future of Bitcoin
With the release of kBTC, Kraken is taking Bitcoin to the next level, expanding its capabilities on other networks. We believe that kBTC strengthens Bitcoin's position in the crypto industry, incentivizing developers and users to discover new ways to use this asset.
