Cryptocurrency exchange Kraken has launched its own Wrapped Bitcoin (kBTC) token, available on Ethereum and OP Mainnet.
Backed 1:1 by bitcoin, the token will be fully held in Kraken Financial’s US qualified custody solution with a publicly visible reserve wallet for transparency.
Wrapped tokens like kBTC enable assets like bitcoin to be used in decentralized finance (DeFi) platforms for trading, lending, and borrowing. Kraken’s kBTC will join the growing trend of wrapped bitcoin tokens, following the recent launch of Coinbase’s Wrapped BTC (cbBTC).
Although no spot market will be supported for kBTC at launch, users will be able to exchange the token for the underlying bitcoin. The minimum deposit for kBTC is 0.00026 BTC (around $15). Kraken aims to drive DeFi adoption with this launch, partnering with major DeFi applications such as Paraswap, Yearn and Curve.
Mark Greenberg, Global Head of Growth and Asset Management at Kraken, said: “We believe in an onchain future and DeFi represents a key part of this opportunity. kBTC builds on Kraken’s long history of seamless user experience and premium security, bringing DeFi to new users and accelerating the adoption of decentralized applications. »
A California judge ruled last month that the SEC’s case against Kraken, alleging the exchange violated federal securities laws by failing to register as a broker-dealer, clearinghouse or exchange, will go to trial . Similar rulings have been issued in SEC cases against other major cryptocurrency exchanges, including Binance and Coinbase.
The SEC filed its complaint against Kraken In November 2022, the SEC filed a motion in the Northern District of California, seeking a permanent injunction to prevent further securities violations, as well as disgorgement of alleged “ill-gotten gains” and other civil penalties. The SEC identified 11 tokens (ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG and SOL) as unregistered securities.
Kraken maintains that it was never required to register with the SEC because it does not operate as an exchange, broker-dealer, or clearing agent within the meaning of the definitions set forth in the Exchange Act.
