Kraken has launched a new wrapped Bitcoin product called kBTC, competing against existing offerings from BitGo, Coinbase, and 21.co. This Bitcoin-backed digital asset is structured as an ERC-20 token and is supported by on-chain reserves, with an initial backing of 100 Bitcoin worth approximately $6.7 million held securely by Kraken. The introduction of kBTC aims to enhance transparency and functionality in the decentralized finance (DeFi) space. Kraken's Global Head of Asset Growth and Management emphasized the importance of on-chain solutions for cryptocurrency users, stating that kBTC allows Bitcoin owners to participate more actively in DeFi. The launch comes amid scrutiny of BitGo’s recent governance changes over Wrapped Bitcoin (WBTC) and follows Coinbase's recent entry into the wrapped Bitcoin market. Since its debut, Coinbase's cbBTC has quickly gained traction, with a supply reaching 6,515 tokens, valued at $440 million. The competition among these wrapped Bitcoin products could reshape the market landscape as Kraken seeks to establish a significant presence in DeFi.

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