Kraken launches kBTC as competition heats up in wrapped Bitcoin market
Kraken has launched a new wrapped Bitcoin product, kBTC, which is a fully-backed ERC-20 token representing Bitcoin, with each kBTC backed 1:1 by Bitcoin stored in Kraken’s custody. The token has been audited by Trail of Bits and aims to enhance global crypto adoption by expanding Bitcoin's use cases in DeFi and other blockchain ecosystems. kBTC is compatible with decentralized applications on networks like Ethereum and OP Mainnet, with plans for further compatibility with non-EVM networks. The total supply of kBTC is 100 BTC, valued at approximately $6.75 million, with 80 kBTC circulating on Ethereum and 20 kBTC on OP Mainnet. Kraken's entry into the wrapped Bitcoin market comes amid rising competition, particularly against BitGo's Wrapped Bitcoin (WBTC), which holds a 90% market share. Other competitors include Coinbase's cbBTC and 21.co's 21BTC. Concerns arose in the crypto community following BitGo's partnership with BiT Global, linked to Justin Sun, prompting some DeFi protocols to reconsider support for WBTC.
