The Kraken kBTC page of Bitcoin Layers is under development.

We have not yet implemented our proof-of-reserves and therefore cannot assure you that wrappers are fully backed, 1:1, with BTC. Please use caution interacting with these wrapped BTC assets. Additionally, there may be incomplete or outdated research.

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Kraken kBTC

Overview

Status

Mainnet

Type

Reserve

BTC Supply

₿0

Kraken kBTC is a BTC-backed reserve asset that can be used on Ethereum or Optimism

Risk Summary

Users do not have unilateral claims on native BTC.

BTC backing this asset is secured by a centralized custodian. Users trust this single entity with maintaining the peg with BTC.

Assessment

Asset Custody

Users trust Kraken to secure funds backing kBTC

Kraken, a centralized custodian, secures the BTC backing kBTC. The funds backing kBTC are held at Kraken Financial, a Wyoming-chartered SPDI (Special Purpose Depository Institution).

Users trust Kraken to implement secure custody practices for kBTC reserve assets.

Further sections to be reviewed

Aspects related to minting & burning, key management, transaction signing, and proof-of-reserves have not been reviewed. We are currently reviewing these sections.