Kraken Unveils a New Wrapped Bitcoin Token for DeFi Integration

Kraken, a prominent crypto exchange, has rolled out kBTC, its own version of wrapped Bitcoin.

This new token will be available on the Ethereum and Optimism networks, with each kBTC representing one Bitcoin held securely by Kraken.

The introduction of wrapped tokens like kBTC enables Bitcoin and Ethereum to participate in decentralized finance (DeFi) activities, which typically occur on alternative blockchains. With this launch, Kraken aims to foster greater engagement with DeFi by allowing Bitcoin owners to trade, lend, and borrow without needing to sell their assets.

Mark Greenberg, who oversees global asset growth and management at Kraken, expressed the firm’s strong belief in the potential of on-chain finance, asserting that DeFi is crucial for future opportunities. He emphasized that kBTC continues Kraken’s tradition of offering an excellent user experience while enhancing security, thereby attracting new users to decentralized applications.

Kraken has assured customers that the Bitcoin supporting kBTC will be securely stored in a dedicated wallet through its US-regulated custody service, Kraken Financial. Users will have access to the wallet address, ensuring transparency about the full backing of kBTC with actual Bitcoin reserves.