Hassan Maishera
TL;DR
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Kraken has launched its own version of wrapped bitcoin, kBTC, on the Ethereum and OP mainnets.
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This comes a month after rival crypto exchange Coinbase unveiled its tokenized version of Bitcoin, cbBTC.
Kraken Launches kBTC
Cryptocurrency exchange Kraken announced on Thursday that it has launched its version of wrapped Bitcoin on the Ethereum blockchain and OP Mainnet. This latest development comes shortly after rival cryptocurrency exchange Coinbase unveiled its cbBTC.
In a blog post on Thursday, Kraken said kBTC is a cross-network compatible ERC-20 token, fully backed 1:1 by an equivalent amount of bitcoin custodied at Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution.
Kraken also revealed the onchain address for kBTC’s reserves, allowing users to verify the product’s backing.
According to Kraken, kBTC transforms Bitcoin’s utility by allowing it to integrate seamlessly into Ethereum, OP Mainnet, and beyond. Kraken plans to extend compatibility to additional networks, including non-EVM ecosystems.
Kraken added that,
“With kBTC, we’re bringing the power of Bitcoin to new networks, underpinned by the trust and security expertise Kraken has established over the last decade. We believe kBTC reinforces Bitcoin’s position as the epicenter of crypto, empowers crypto builders to explore new ways to use Bitcoin, and pushes the entire ecosystem forward.”
The cryptocurrency exchange revealed that the launch partners include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
This latest development comes a month after rival cryptocurrency exchange Coinbase launched its tokenized version of Bitcoin, cbBTC, on the Ethereum and Base networks. According to the crypto exchange, the Coinbase Wrapped BTC (cbBTC) is an ERC-20 token backed on a 1:1 basis with bitcoin (BTC). Coinbase holds the tokens and allows users to use Bitcoins they already hold in new ways onchain. Coinbase said it is also working to expand native cbBTC support to additional chains.
