Kraken recently launched a new product called kBTC in the wrapped Bitcoin market to keep up with the increasing competition. This new token, kBTC, is an ERC-20 token that is fully backed and cross-network compatible. Each kBTC is backed 1:1 by Bitcoin stored securely in Kraken’s custody. The token has also undergone security audits by Trail of Bits.
Kraken’s decision to introduce kBTC is in line with their goal of promoting global crypto adoption. By leveraging Bitcoin’s strengths and expanding its use cases into DeFi and other blockchain ecosystems, Kraken hopes to provide a secure solution that unlocks Bitcoin’s value across various platforms. Some of the partners involved in the launch of kBTC include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.
Currently, the total supply of kBTC is 100 BTC, valued at around $6.75 million. Most of the kBTC tokens are circulating on the Ethereum network, while some are on the OP Mainnet. This move by Kraken comes at a time when competition in the wrapped Bitcoin market is heating up.
BitGo’s Wrapped Bitcoin (WBTC) has been dominating the market with a $10 billion market capitalization, controlling around 90% of the market share. However, other players like Coinbase with cbBTC and 21.co with 21BTC have entered the market, offering their own versions of wrapped Bitcoin.
The competition intensified after BitGo’s partnership with BiT Global, a company linked to Tron founder Justin Sun, raised concerns in the crypto community. Some DeFi protocols are even considering discontinuing support for WBTC on their platforms due to these developments.
Kraken’s kBTC is set to compete in this growing market of wrapped Bitcoin offerings, providing users with more options and expanding the use cases for Bitcoin in different ecosystems. With its strong backing and cross-network compatibility, kBTC aims to make a mark in the wrapped Bitcoin space and contribute to the overall growth of the cryptocurrency market.