Kraken Launches Wrapped Bitcoin on Ethereum and OP Mainnet Chains

Cryptocurrency exchange Kraken announced on Thursday the launch of Kraken Wrapped Bitcoin (kBTC), a cross-network compatible ERC20 token backed by Bitcoin and custodied by Kraken. Kraken stated that through interoperability with the Ethereum blockchain and the layer-two network OP Mainnet (formerly known as Optimism), users can utilize kBTC on decentralized applications (dApps). The announced partners for this initiative include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn. The company also plans to extend this wrapped token to other networks, including non-EVM ecosystems. According to the announcement, the ERC-20 smart contract for kBTC has undergone evaluation by external security audit firm Trail of Bits, and Kraken has publicly disclosed the on-chain reserve addresses for users’ real-time verification. Prior to this, US cryptocurrency exchange Coinbase also launched its own wrapped Bitcoin, Coinbase Wrapped BTC (cbBTC), in September, which currently has a market value of $442 million. The market value of Wrapped Bitcoin (WBTC), which raised concerns in the community recently, stands at $10 billion.