Kraken has announced the introduction of its own wrapped Bitcoin token, which is managed by the cryptocurrency exchange.
Named ‘Kraken Bitcoin (kBTC),’ this new offering is a fully collateralized, cross-network-compatible ERC-20 version of Bitcoin.
As per the official blog post, kBTC is securely stored at Kraken’s Wyoming-chartered Special Purpose Depository Institution (SPDI) – Kraken Financial.
kBTC is built to engage with decentralized applications, making it compatible with networks like Ethereum and OP Mainnet. Looking ahead, Kraken aims to broaden the token’s compatibility to additional networks, including those outside the EVM ecosystem.
According to Kraken, an independent security auditing firm named “Trail of Bits” has performed a comprehensive evaluation of the kBTC ERC-20 smart contract. The audit confirmed that kBTC passed with flying colors, involving a detailed examination of its codebase and client architecture to identify and address any potential security vulnerabilities.
Upon its launch, kBTC will receive backing from Paraswap, Yearn, Gauntlet, deBridge, and Definitive.
“With kBTC, we’re delivering the strength of Bitcoin to new networks, supported by the trust and security expertise that Kraken has built over the past decade. We believe kBTC enhances Bitcoin’s role as the center of crypto, empowers crypto developers to discover innovative uses for Bitcoin, and advances the overall ecosystem.”
Notably, this recent development follows just a month after another American crypto trading platform, Coinbase, introduced its Wrapped Bitcoin product (cbBTC) on Base and Ethereum.
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