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Cryptocurrency exchange Kraken has joined the race for dominance in the wrapped bitcoin space and has introduced its own ethereum-based token, kBTC.
The Wrapped Bitcoins landscape is getting more crowded as US-based cryptocurrency exchange Kraken unveiled its own Wrapped bitcoin, just a month after rival Coinbase took the same step.
in a blog ad On Thursday, October 17, the San Francisco-based trading platform said the “kBTC” token is built on the ethereum network and “fully backed 1:1 by an equivalent amount of bitcoin” at Kraken Financial, a Wyoming-registered company. . depository institution. Kraken emphasized that “customers can verify this for themselves at any time by inspecting our on-chain reserves,” underscoring its commitment to transparency among competitors.
crypto Exchanges Compete in Wrapped bitcoin Battle
In addition to ethereum, kBTC holders can also use the token in decentralized applications through interoperability with OP Mainnet (formerly known as Optimism), according to the announcement.
Kraken added that New York-based blockchain cybersecurity firm Trail of Bits evaluated the kBTC ERC-20 smart contract, noting that the audit involved a “detailed examination of our codebase and client architecture, intended to identify and address any potential security vulnerabilities.”
The launch comes just a month after Coinbase introduced its own wrapped bitcoin, called “cBTC,” available on both ethereum and Base. Kraken's move also follows increased scrutiny of BitGo's Wrapped bitcoin (wBTC), particularly after the company partnered with Hong Kong's BiT Global. This partnership raised concerns in the crypto community about the possible change of control over wBTC to an entity linked to TRON founder Justin Sun.
