Crypto exchange Kraken has launched its tokenized version of Bitcoin, kBTC.
Background
- kBTC is a fully backed ERC-20 token
- It is cross-network-compatible
- Each kBTC token is fully backed 1:1 by Bitcoin held in custody
- The backed BTC is held at Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution [SPDI]
- There won't be any supported spot markets for kBTC at launch
Why should you pay attention?
- kBTC can be used on dApps via interoperability with networks like Ethereum and OP Mainnet
- Alongside the aforementioned networks, the team is looking to extend compatibility to additional networks, including non-EVM ecosystems
- The minimum deposit size for kBTC on both Ethereum and Optimism will be 0.00026 BTC
- kBTC will be supported across a host of blue-chip DeFi apps
- Its partners include: Kraken, Kraken Wallet, Ethereum, Optimism, Paraswap, Yearn, Gauntlet, deBridge, Definitive, CowSwap, Beefy, Velodrome, Curve, and Morpho
Who said what?
- Highlighting the essence of kBTC, the Kraken team noted,
“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”
- Mark Greenberg, Kraken's global head of asset growth and management, asserted,
"We believe in an on-chain future and DeFi represents a key part of that opportunity”
Zooming out
- The recent BitGo x Justin Sun episode instilled chaos and raised several concerns with respect to wBTC, the largest wrapped BTC token
- In retrospect, Kraken is not the only exchange/entity to have launched a wrapped Bitcoin token of late
- Several others including Coinbase have put to sea their respective versions
