Kraken launches kBTC as competition heats up in wrapped Bitcoin market

Kraken has introduced a caller wrapped Bitcoin product, kBTC, to pat into the rapidly expanding sector, according to an Oct. 17 statement.

kBTC is simply a fully-backed, cross-network-compatible ERC-20 token representing Bitcoin. Each kBTC is backed 1:1 by an equivalent magnitude of Bitcoin, stored securely successful Kraken’s custody, with on-chain reserves disposable for nationalist verification. The token has undergone audits by the information steadfast Trail of Bits.

Kraken emphasized that the motorboat of kBTC aligns with its ngo to beforehand planetary crypto adoption. The merchandise leverages Bitcoin’s strengths portion expanding its usage cases into DeFi and different blockchain ecosystems. The firm’s motorboat partners see deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.

Kraken stated:

“kBTC provides a secure, fully-backed solution that unlocks Bitcoin’s unparalleled worth and imaginable crossed a divers scope of ecosystems.”

kBTC tin beryllium utilized crossed decentralized applications (dApps) done its compatibility with networks similar Ethereum and OP Mainnet. Kraken besides plans to widen its compatibility to different blockchain ecosystems, including non-EVM networks.

The latest on-chain information shows the full proviso of kBTC is 100 BTC, valued astatine astir $6.75 million. Of this, 80 kBTC is circulating connected the Ethereum network, held by 17 wallets, portion the remaining 20 kBTC resides connected the OP Mainnet, with 11 holders.

Rising contention for WBTC

Kraken’s introduction into the wrapped Bitcoin abstraction comes amid intensifying contention successful this market, which is looking to situation the dominance of BitGo’s Wrapped Bitcoin (WBTC), which presently controls 90% of the marketplace with a $10 cardinal marketplace capitalization.

In September, Coinbase launched its ain wrapped Bitcoin, cbBTC, connected Ethereum and Base. Around the aforesaid time, 21.co, the genitor institution of 21Shares, released its wrapped Bitcoin product, 21BTC.

The caller surge successful wrapped Bitcoin offerings began aft BitGo announced a arguable concern with Hong Kong-based BiT Global successful August, a steadfast connected to Tron laminitis Justin Sun.

The determination caused interest among immoderate successful the crypto community, peculiarly regarding Sun’s involvement. As a result, DeFi protocols similar Sky (formerly MakerDAO) and Aave are considering discontinuing enactment for WBTC connected their platforms.

The station Kraken launches kBTC arsenic contention heats up successful wrapped Bitcoin market appeared archetypal connected CryptoSlate.