Kraken launched a brand new packaged bitcoin product, kBTC, to faucet into the fast-growing sector, in keeping with a press release on October 17.
kBTC is a totally backed-up cross-network ERC-20 token representing Bitcoin. Every kBTC is backed 1:1 by an equal quantity of Bitcoins which can be securely saved in Kraken's escrow, with on-chain reserves accessible for public verification. The token has handed the audits of the safety agency Path of Bits.
Kraken emphasised that the launch of kBTC is in step with its mission to advertise international adoption of cryptocurrencies. The product leverages Bitcoin's strengths whereas increasing its use instances into DeFi and different blockchain ecosystems. The agency's launch companions embrace deBridge, Definitive, Gauntlet, ParaSwap and Yearn.
The Kraken said:
“kBTC offers a safe, totally supported answer that unlocks the distinctive worth and potential of Bitcoin throughout all kinds of ecosystems.”
kBTC can be utilized throughout decentralized functions (dApps) as a consequence of its compatibility with networks like Ethereum and OP Mainnet. Kraken additionally plans to develop its compatibility to different blockchain ecosystems, together with non-EVM networks.
The newest knowledge on the chain reveals that the full provide of kBTC is 100 BTC value about 6.75 million USD. Of this, 80kBTC circulates on the Ethereum community held by 17 wallets, whereas the remaining 20kBTC resides on the OP Mainnet with 11 holders.
Rising competitors for WBTC
Kraken's entry into the packaged bitcoin house comes amid rising competitors available in the market because it seeks to problem the dominance of Bitcoin BitGo (WBTC), which at present instructions 90% of the market with a market cap of $10 billion.
In September, Coinbase launched its personal packaged bitcoin, cbBTC, on Ethereum and Base. Across the identical time, 21.co, the dad or mum firm of 21Shares, launched its packaged bitcoin product, 21BTC.
The current surge in packaged bitcoin choices started after BitGo introduced a controversial partnership in August with Hong Kong-based BiT International, a agency linked to Tron founder Justin Solar.
The transfer raised considerations amongst some within the crypto group, notably relating to Solar's involvement. Due to this fact, DeFi protocols comparable to Sky (previously MakerDAO) and Aave are contemplating ending WBTC help on their platforms.
