Kraken Rolls Out a Wrapped Bitcoin Token

Kraken has announced the release of its own ERC-20 representation of Bitcoin, called kBTC, on October 17.

This token will be backed 1:1 by actual Bitcoin held in Kraken’s custody through its Wyoming-chartered Special Purpose Depository Institution, Kraken Financial.

The smart contract for kBTC has been audited by external security firm Trail of Bits.

According to Kraken, the token will enhance Bitcoin’s features of security, scarcity, and store of value by making it compatible with DeFi and other networks.

It will be cross-chain compatible, allowing for easy integration into Ethereum, OP Mainnet, and potentially other non-EVM compatible ecosystems.

Kraken is following other exchanges such as Coinbase and 21Shares in launching its own version of wrapped Bitcoin.