Kraken, a prominent cryptocurrency exchange, has announced the launch of a Wrapped Bitcoin token called kBTC on the Ethereum and OP Mainnet platforms. This move enables Bitcoin to be used in decentralized finance (DeFi) ecosystems.

Introduction to kBTC by Kraken

The kBTC token is backed by Bitcoin at a 1:1 ratio, which is held in custody by Kraken. These tokens allow the integration of Bitcoin and Ethereum into DeFi ecosystems that typically operate on other blockchains.

Features and Purpose of kBTC

With kBTC, Kraken aims to accelerate DeFi adoption by enabling BTC holders to trade, lend, and borrow on DeFi platforms without selling their assets. This initiative should expand the use of decentralized applications.

Security and Transparency of the Token

Kraken emphasizes that the Bitcoin backing kBTC will be held in a segregated wallet by the exchange’s US-regulated qualified custody solution, Kraken Financial. The wallet address will be public, allowing users to verify that all BTC is fully backed and in reserve. The minimum deposit size for kBTC on Ethereum and Optimism will be 0.00026 BTC.

Kraken’s launch of kBTC opens new opportunities for integrating Bitcoin into decentralized financial systems while maintaining high levels of security and transparency.