A sealed Bitcoin token can work with Ethereum and OP Mainnet.

Kraken has announced the launch of its own capped Bitcoin token owned by a crypto exchange.

Dubbed ‘Kraken Bitcoin (kBTC)', the new product is a fully supported, network-compatible ERC-20 representation of Bitcoin.

According to the official blog post, kBTC is held by cryptocurrency exchange Wyoming-Chartered Special Purpose Depository Institution (SPDI) – Kraken Financial.

kBTC is designed to support decentralized applications by being compatible with networks such as Ethereum and OP Mainnet. In the future, Kraken plans to expand the token's compatibility with other networks, including non-EVM ecosystems.

Kraken has revealed that an independent security auditing company called “Trail of Bits” has conducted an in-depth review of the kBTC ERC-20 smart contract. KBTC is said to have completed the audit, which included an in-depth review of the code base and client architecture to find and flag security flaws.

At launch, kBTC will have support from Paraswap, Yeren, Gauntlet, DeBridge and Definitive.

“At kBTC, we bring the power of Bitcoin to new networks, backed by the trust and security expertise that Kraken has built over the past decade. We believe that kBTC will strengthen Bitcoin's position as a crypto hub, allow crypto developers to explore new ways to use Bitcoin, and push the entire ecosystem forward.

Interestingly, the latest development comes just over a month after another US-based crypto trading platform, Coinbase, launched its tokenized Bitcoin product (cbBTC) on Base and Ethereum.