Kraken, a major cryptocurrency exchange, launched Kraken Wrapped Bitcoin (kBTC). This new token is backed 1:1 by actual Bitcoin held at Kraken Financial, a Wyoming-chartered institution, ensuring transparency and security. For every kBTC issued, there is an equivalent Bitcoin stored with Kraken.

Built for Ethereum and OP Mainnet

kBTC is built on the ERC-20 standard, allowing it to operate on the Ethereum network and OP Mainnet, previously known as Optimism. This makes kBTC versatile and usable across different decentralized applications (DApps), which traditionally don’t support Bitcoin directly. With kBTC, Bitcoin can now participate in the expanding decentralized finance (DeFi) ecosystem.

Security and Transparency Measures

Kraken has prioritized transparency by allowing users to inspect the Bitcoin reserves behind kBTC. The company has provided public access to on-chain data, enabling users to view the custody address and smart contracts on both Ethereum and OP Mainnet. Additionally, security firm Trail of Bits conducted an audit of the kBTC smart contract, which successfully passed all tests.

Integration with DeFi Platforms

Though Kraken will not initially support any spot markets for kBTC, users can redeem the token for Bitcoin at any time. Moreover, it plans to integrate kBTC into major DeFi platforms, including Yearn, Curve, and Paraswap, further enhancing its utility in lending, borrowing, and trading on Ethereum-based DeFi networks.

With a minimum deposit of 0.00026 BTC, kBTC opens up Bitcoin to broader DeFi participation, improving interoperability across blockchains.