Kraken has officially unveiled its wrapped Bitcoin token kBTC, set to support a range of leading DeFi applications despite no spot markets available at launch.

Kraken's Wrapped Bitcoin Token

This new ERC-20 token will be issued on Ethereum and OP Mainnet (formerly known as Optimism), backed 1:1 by actual Bitcoin. The backing Bitcoin will be stored in a segregated wallet within Kraken Financial, with the wallet address made publicly available for verification.

kBTC's DeFi Ecosystem Integration

Kraken aims to foster greater DeFi adoption through the use of wrapped tokens, enabling unsupported cryptocurrencies, like Bitcoin, to be used in DeFi applications. kBTC will support applications such as Kraken, Ethereum, Optimism, Paraswap, Yearn, and more.

Features and Prospects of kBTC

Though no spot markets for kBTC are currently available, clients will have the ability to redeem Bitcoin for trading immediately. This initiative is set to enhance DeFi market development and expand user capabilities within cryptocurrency operations.

With the launch of kBTC, Kraken strengthens its market presence by offering innovative solutions and expanding integration opportunities within DeFi applications.