Meet kBTC

kBTC is a wrapped Bitcoin token issued by Kraken. It’s fully backed by Bitcoin held in Kraken’s custody and designed for use on Ethereum and OP Mainnet (and more to come). This allows you to use Bitcoin in DeFi activities and other onchain applications that are not natively supported by Bitcoin.

For more information on what are ‘wrapped’ crypto assets, visit our Learn center.

Each kBTC token is fully backed by an equivalent amount of Bitcoin held in Kraken’s segregated asset reserves. This ensures that for every kBTC in circulation, there is an equal amount of Bitcoin securely stored by Kraken, providing transparency and security.

Kraken maintains transparency by allowing users to verify the reserves backing kBTC. You can check the reserve balances through the links provided by Kraken.

• OP Mainnet kBTC smart contract
• Ethereum kBTC smart contract
• SPDI Custody wallet

Obtaining kBTC is different from other tokens, in that it is not available to buy, and instead you need to exchange your BTC for it in your Kraken account. To exchange BTC to kBTC:

1. Hold some BTC in your Kraken account.
2. Go to the portfolio page on Kraken (web or mobile).
3. Select Withdraw and choose Bitcoin from the Asset dropdown.
4. Select Ethereum (kBTC) or OP Mainnet (kBTC) from the Network dropdown.
5. Complete the process, and your BTC will be exchanged to kBTC on the selected network.

To exchange kBTC back to Bitcoin, you will need to deposit kBTC into your Kraken account. On the deposit page, choose Bitcoin from the Asset dropdown then select Ethereum (kBTC) or OP Mainnet (kBTC) from the Network dropdown. Send your kBTC to that address. Once the kBTC is received, Kraken will automatically exchange it back to the Bitcoin equivalent to your Kraken account.

kBTC can be used in various on-chain activities on Ethereum and OP Mainnet at launch. Keep an eye on our blog and this article for the latest updates on kBTC.

Yes, kBTC benefits from Kraken’s industry-leading security and over a decade of custodial expertise, with the Bitcoin backing each kBTC token securely stored in Kraken’s segregated reserves. As a state-chartered bank, Kraken Financial ensures the safety and security that is expected from a regulated financial institution, with digital assets protected by advanced encryption and security protocols at all times.

No, there are currently no trading pairs available with kBTC.

• Minimum Deposit:
  • Ethereum: 0.00026 BTC
  • OP Mainnet: 0.00026 BTC

• Minimum Withdrawal
  • Ethereum: 0.00001 BTC
  • OP Mainnet: 0.00001 BTC
     
• Deposit Fees
  • Ethereum: 0.05%
  • OP Mainnet: 0.05%
     
• Withdrawal Fees
  • Ethereum: onchain fee + 0%
  • OP Mainnet: 0.00001 + 0%
     
• Processing Time:
  • On Ethereum: Approximately 14 minutes
  • On OP Mainnet: Less than 90 minutes
     
• Required Network Confirmations:
  • Ethereum: 70 confirmations
  • OP Mainnet: 40 Layer 1 confirmations

kBTC can be used on Ethereum and OP Mainnet. It’s compatible with a wide range of on-chain projects, allowing you to explore various opportunities within the on-chain ecosystem.

For clarification, kBTC is not the same as Bitcoin. kBTC allows you to participate in the rapidly growing DeFi ecosystem by putting the Bitcoin that is backing the kBTC to work in ways that aren’t possible on the native Bitcoin network just yet. kBTC offers the flexibility to do so.

• Deposit Fees
  • Ethereum: 0.05%
  • OP Mainnet: 0.05%
     
• Withdrawal Fees
  • Ethereum: onchain fee + 0%
  • OP Mainnet: 0.00001 + 0%

You can exchange any amount of BTC to an equivalent amount of kBTC, with a minimum equal to the required minimum for withdrawals and deposits (see “What are the transaction parameters for kBTC?”).

The conversion rate is 1:1, meaning 1 BTC equals 1 kBTC. For example, 0.1 BTC will be exchanged for 0.1 kBTC, and 0.001 BTC will be exchanged for 0.001 kBTC.

Yes, the kBTC smart contract has undergone thorough reviews by Kraken's engineering and security teams. Additionally, it has been subjected to a third-party smart contract security audit from, Trail of Bits, to ensure its safety and reliability.

Yes, Kraken is continually exploring opportunities to expand kBTC’s availability. Stay tuned for updates on future network support.

kBTC is a wrapped token. Wrapped tokens are typically backed by, and represent, other crypto-assets, and are created to facilitate compatibility and interaction across different blockchain protocols. In addition to the general risks associated with crypto assets, wrapped tokens like kBTC have some unique risks. Learn more about kBTC risks in the whitepaper.