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- Kraken has launched kBTC, a wrapped Bitcoin token
- kBTC is fully backed 1:1 by Bitcoin and is fleet available on Ethereum and Optimism networks
- The token permits customers to hold interplay in decentralized finance (DeFi) applications, enabling seamless interplay with decentralized apps (dApps) throughout various ecosystems
Crypto OG alternate Kraken has presented kBTC, a wrapped Bitcoin token that is pegged 1:1 to Bitcoin. On hand on Ethereum and Optimism networks, the ERC-20-primarily based entirely mostly token is geared toward bridging Bitcoin’s wide liquidity into the decentralized finance (DeFi) area, allowing customers to leverage Bitcoin’s worth in decentralized applications (dApps). This open is phase of Kraken’s technique to pork up Bitcoin’s accessibility internal the DeFi ecosystem 5 years after the fundamental wrapped Bitcoins came onto the market.
Bringing BTC to DeFi
Kraken presented kBTC in a press release the day long gone by, noting that the token will most possible be fully backed by Bitcoin reserves held in Kraken’s custody, offering customers with the transparency and safety they assign apart a query to from the platform. “We’re thrilled to open kBTC, a token that mixes the safety and have confidence Kraken has built throughout the final decade with the vitality of Bitcoin within the DeFi world,” Kraken stated in its press release.
Kraken targets to area kBTC as a key participant within the growing marketplace for wrapped Bitcoin tokens, which additionally comprises opponents admire WBTC, cbBTC, and 21BTC. These tokens allow Bitcoin holders to hold interplay in blockchain ecosystems start air of Bitcoin’s hold network, making employ of faster blockchains and increased utility. In accordance to Kraken, kBTC will offer additional injurious-network compatibility as the platform looks to be to expand into various crypto ecosystems past Ethereum.
Wrapped Bitcoin Theory Now Five Years Dilapidated
Kraken says that its broader just with kBTC is to give developers and customers new strategies to embody Bitcoin into neat contracts, DeFi, and various Web3 applications, emphasizing the token’s attainable to “push the total ecosystem forward” and reinforce Bitcoin’s standing as the cornerstone of cryptocurrency innovation.
The first wrapped Bitcoin was as soon as WBTC, a joint endeavor between a number of entities, including BitGo, Kyber Community, and Ren, which launched in January 2019.
