Introducing Kraken Wrapped Bitcoin (kBTC): Unleashing Bitcoin’s potential across networks
Our mission constantly challenges us to find innovative ways to accelerate the global adoption of crypto. kBTC builds upon Bitcoin’s fundamental strengths – security, scarcity and its role as a store of value – and extends its utility further, into DeFi and beyond.
What is kBTC?
kBTC is a fully backed, cross-network-compatible ERC-20 token. Each kBTC token is fully backed 1:1 by an equivalent amount of Bitcoin and held securely in Kraken’s custody. Clients can verify this for themselves at any time by inspecting our reserves onchain.
kBTC can be used in decentralized applications (dApps) through interoperability with networks like Ethereum and OP Mainnet (formerly known as Optimism).
Why kBTC?
We’ve always championed the transformative potential of Bitcoin, the original and most resilient digital asset ever created. Now, with kBTC, you’re not just getting a wrapped token that lets you dive deeper into DeFi, you’re getting Kraken’s 13+ years of industry-leading custody infrastructure. This ensures that when you use kBTC, it is backed 1:1 by Bitcoin, securely stored and always accessible.
Kraken’s best-in-class custody procedures
Kraken’s full-reserve practices and regulated framework provide an unparalleled level of security and trust. Each kBTC token is backed 1:1 by an equivalent amount of Bitcoin held at Kraken Financial, a Wyoming-chartered SPDI (Special Purpose Depository Institution).
Don’t trust – verify!
Don’t take our word for it, see for yourself. We encourage you to inspect our onchain reserves and independently verify the transparency and security that we’ve built into kBTC:
Verify that kBTC is 1:1 backed
Security and transparency are the core of kBTC
The kBTC ERC-20 smart contract was rigorously evaluated by Trail of Bits, an external security auditing firm. This audit, which kBTC passed, involved a detailed examination of our codebase and client architecture, aimed at identifying and addressing any potential security vulnerabilities.
Benefits of kBTC
kBTC transforms Bitcoin’s utility by allowing it to seamlessly integrate into Ethereum, OP Mainnet and beyond, with plans to extend compatibility to additional networks, including non-EVM ecosystems.
Whether you’re a developer aiming to enhance your dApps with Bitcoin or an investor seeking to broaden your onchain portfolio, kBTC provides a secure, fully-backed solution that unlocks Bitcoin’s unparalleled value and potential across a diverse range of ecosystems. Our Day 1 launch partners include deBridge, Definitive, Gauntlet, ParaSwap and Yearn.
Kraken’s commitment to the future of Bitcoin
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.
Join us in this journey as we push the boundaries of what’s possible with Bitcoin, and ensure it remains the bedrock of the crypto industry for generations to come.
Ready to trade but don’t have a Kraken account yet? Sign up today!
Geographic restrictions apply. These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, stake, or hold any cryptoasset or to engage in any specific trading strategy. Kraken makes no representation or warranty of any kind, express or implied, as to the accuracy, completeness, timeliness, suitability or validity of any such information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Kraken does not and will not work to increase or decrease the price of any particular cryptoasset it makes available.
Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position. Geographic restrictions may apply.
Custody services provided by Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution. Kraken Financial is not an FDIC-insured bank and deposits are neither insured by nor subject to the protections of the FDIC.
The post Introducing Kraken Wrapped Bitcoin (kBTC): Unleashing Bitcoin’s potential across networks appeared first on Kraken Blog.
