Of this, 80 kBTC is circulating on the Ethereum network, held by 17 wallets, while the remaining 20 kBTC resides on the OP Mainnet, with 11 holders.Kraken’s entry into the wrapped Bitcoin space comes amid intensifying competition in this market, which is looking to challenge the dominance of BitGo’s Wrapped Bitcoin (WBTC), which currently controls 90% of the market with a $10 billion market capitalization.
In September, Coinbase launched its own wrapped Bitcoin, cbBTC, on Ethereum and Base, while 21.co, the parent company of 21Shares, released its wrapped Bitcoin product, 21BTC. kBTC is a fully-backed, cross-network-compatible ERC-20 token representing Bitcoin, with each kBTC backed 1:1 by an equivalent amount of Bitcoin stored securely in Kraken’s custody.
The token has undergone audits by the security firm Trail of Bits to ensure its safety and security. The recent surge in wrapped Bitcoin offerings began after BitGo announced a controversial partnership with Hong Kong-based BiT Global in August, a firm connected to Tron founder Justin Sun.
The move caused concern among some in the crypto community, particularly regarding Sun’s involvement.
Kraken, a major cryptocurrency exchange, has introduced a new wrapped Bitcoin product called “kBTC” to tap into the rapidly expanding sector, according to a statement on October 17. Kraken emphasized that the launch of kBTC aligns with its mission to promote global crypto adoption. As a result, DeFi protocols like Sky (formerly MakerDAO) and Aave are considering discontinuing support for WBTC on their platforms.
The product leverages Bitcoin’s strengths while expanding its use cases into DeFi and other blockchain ecosystems.
The firm’s launch partners include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn.Kraken stated that “kBTC provides a secure, fully-backed solution that unlocks Bitcoin’s unparalleled value and potential across a diverse range of ecosystems.” kBTC can be used across decentralized applications (dApps) through its compatibility with networks like Ethereum and OP Mainnet, and Kraken also plans to extend its compatibility to other blockchain ecosystems, including non-EVM networks.
The latest on-chain data demonstrates the total supply of kBTC is 100 BTC, valued at approximately $6.75 million.
