The second-largest crypto exchange in the U.S. has just launched a new token. It’s called Kraken Wrapped Bitcoin, or kBTC for short.

This token is pegged to Bitcoin (BTC) at a 1:1 ratio. What does that mean? Simply put, for every kBTC token, there’s an equivalent amount of Bitcoin securely held by Kraken.

In their announcement, Kraken expressed excitement about this launch. They stated, “We are thrilled to introduce kBTC, a fully backed, cross-network-compatible ERC-20 representation of Bitcoin.”

So, what can you do with kBTC? It’s designed for use in decentralized applications, or dApps. Plus, it will work on Ethereum and OP Mainnet, which was formerly known as Optimism. Kraken also plans to expand kBTC’s capabilities to other layer-1 networks, including those that aren’t based on Ethereum.

Kraken believes this new token will help shape the future of Bitcoin. They said, “With kBTC, we’re bringing the power of Bitcoin to new networks, backed by our trust and security expertise built over the last decade.”

They also added that kBTC reinforces Bitcoin’s role in the crypto space. It empowers developers to explore new ways to use Bitcoin and pushes the entire ecosystem forward.

In short, kBTC represents a significant step for both Kraken and the Bitcoin community. It’s an exciting development that opens up new possibilities.