Kraken, a leading cryptocurrency exchange, has launched a new token, kBTC, available on the Ethereum and Optimism networks. This aims to expand Bitcoin’s utility in decentralized finance (DeFi).

Ensuring Security and Transparency with kBTC

Kraken’s kBTC reserves are publicly verifiable through an on-chain address holding 100 BTC. Of these, 80 kBTC are available on the Ethereum network, while 20 kBTC are on the Optimism network. Kraken’s partnership with Trail of Bits for auditing the kBTC smart contract enhances user trust.

Using kBTC for Liquidity in DeFi

kBTC is integrated into DeFi applications like Paraswap, Yearn, Curve, and Velodrome, offering new use cases for Bitcoin. Kraken allows redeeming the underlying currency, providing users flexibility with a minimum deposit of 0.00026 BTC.

Competing with Coinbase in Wrapped Bitcoin Market

Kraken competes with Coinbase in the wrapped Bitcoin market by offering enhanced security features and transparent reserves. This launch solidifies Kraken’s position in the growing wrapped token market, providing users with reliable solutions.

Kraken’s kBTC offers enhanced features for Bitcoin users in DeFi, strengthening the company's position in a competitive market. Transparency and security remain key elements of success.