Crypto exchange Kraken has introduced its own version of wrapped Bitcoin, called kBTC. This token will be available on both Ethereum and OP Mainnet, and will be backed 1:1 with real Bitcoin.
The Bitcoin will be stored in Kraken Financial, their qualified custody solution, in a separate wallet. The wallet’s address will be made public for customers to verify the full reserve of Bitcoin.
Wrapped tokens, like kBTC, allow for unsupported crypto assets, like Bitcoin and ether, to be used on decentralized finance platforms.
This allows for trading, lending, and borrowing with these assets. The largest wrapped token, WBTC, has a market capitalization of $10 billion and is commonly used as collateral in DeFi lending.
Kraken is not the only major player to introduce a wrapped Bitcoin token, as other companies like BitGo and Coinbase have also launched their own versions.
