{"id":13766,"date":"2024-11-05T05:55:48","date_gmt":"2024-11-04T22:55:48","guid":{"rendered":"https:\/\/bitcoinvn.io\/news\/?p=13766"},"modified":"2026-06-05T18:56:36","modified_gmt":"2026-06-05T11:56:36","slug":"kbtc-now-available-on-bitcoinvn","status":"publish","type":"post","link":"https:\/\/bitcoinvn.io\/insights\/kbtc-now-available-on-bitcoinvn\/","title":{"rendered":"Now available on BitcoinVN &#8211; kBTC, Kraken\u2019s Bitcoin-backed IOU"},"content":{"rendered":"<p>With wBTC, the former frontrunner in the \u201cwrapped Bitcoin\u201d space, seeing a sharp decline in trust ratings after its recent takeover by Justin Sun, the market is now wide open for new competitors.<\/p>\n<p>In August 2024, BitGo, one of wBTC\u2019s former custodians, made a somewhat surprising announcement that Justin Sun, through his entity BiT Global, would become a major stakeholder in wBTC, leaving the industry with much to interpret.<\/p>\n<figure id=\"attachment_13752\" aria-describedby=\"caption-attachment-13752\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13752\" src=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-6.jpg\" alt=\"Justin Sun seated in front of Tron and BitTorrent logos\" width=\"800\" height=\"452\" srcset=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-6.jpg 600w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-6-300x170.jpg 300w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-13752\" class=\"wp-caption-text\">Would you entrust this man with your Bitcoin? A growing number of individuals and firms involved in the space answer this question in the negative<\/figcaption><\/figure>\n<p>While BitGo CEO Mike Belshe quickly reassured wBTC investors that <em>\u201cno single party has the ability to mint or withdraw from the underlying treasury,\u201d<\/em> Justin Sun\u2019s reputation as a seasoned corporate raider in the crypto industry \u2013 having previously drained the reserves of Poloniex, Huobi\/HTX, and TrueUSD, among other takeover targets \u2013 has nonetheless sent shockwaves through entities and individuals with wBTC exposure.<\/p>\n<p>Predictably, trust in wBTC is plummeting.<\/p>\n<p>The circulating supply is contracting as various trading desks and investors adjust risk ratings and increase discount rates on wBTC.<\/p>\n<figure id=\"attachment_13751\" aria-describedby=\"caption-attachment-13751\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13751 size-full\" src=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-5.jpg\" alt=\"Dune Analytics chart showing wBTC monthly supply declining after its 2022 peak\" width=\"800\" height=\"207\" srcset=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-5.jpg 800w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-5-300x78.jpg 300w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-5-768x199.jpg 768w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-5-696x180.jpg 696w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-13751\" class=\"wp-caption-text\">wBTC supply starts to enter its descent \u2013 Chart by Dune Analytics, courtesy of 21.co<\/figcaption><\/figure>\n<p>In response to the market gap left by wBTC\u2019s declining trust, established Western exchanges like Coinbase and Kraken have introduced their own wrapped Bitcoin tokens \u2013 cbBTC and kBTC, respectively.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-13748\" src=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-2.jpg\" alt=\"Kraken co-founder Jesse Powell standing beside a brick wall\" width=\"346\" height=\"230\" srcset=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-2.jpg 600w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-2-300x200.jpg 300w\" sizes=\"auto, (max-width: 346px) 100vw, 346px\" \/><\/p>\n<p>Kraken, in particular, has garnered a strong reputation among early cryptocurrency adopters for its transparent operations and the principled leadership of its co-founder and former CEO, Jesse Powell.<\/p>\n<p>Founded in 2011 as an alternative to the then-dominant Mt. Gox exchange, Kraken has navigated the volatile crypto landscape with consistent integrity, solidifying its status as a trusted industry leader.<\/p>\n<p>In an exclusive statement to BitcoinVN News, a representative from Kraken emphasized:<\/p>\n<p><em>\u201cOur mission constantly challenges us to find innovative ways to accelerate the global adoption of crypto. kBTC builds upon Bitcoin\u2019s fundamental strengths \u2013 security, scarcity, and its role as a store of value \u2013 and extends its utility further, into DeFi and beyond.\u201d<\/em><\/p>\n<h2>Why a Bitcoin IOU? \ud83e\uddd0<\/h2>\n<p>Now, if you take a very purist view, the only real Bitcoin you should ever touch is the actual thing, securely placed in your own wallet (and ideally, in a multisig setup).<\/p>\n<p>But purists aren\u2019t the target for Bitcoin IOUs issued on other chains, which inherently carry some level of trust in third parties.<\/p>\n<p>If the custodian (like Kraken, Coinbase, or others) were to default or mishandle the backing, you could be at risk of loss. These Bitcoin IOUs reintroduce counterparty risk, and it\u2019s prudent not to place a significant portion of your life savings in them.<\/p>\n<p>With that said, Bitcoin-backed IOUs allow certain market participants to utilize a Bitcoin-derived instrument to collateralize their Bitcoin in order to conduct more sophisticated financial transactions, such as taking out loans on DeFi protocols and similar activities.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-13749\" src=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-3.jpg\" alt=\"Illustration of a suited official holding a confiscation document\" width=\"260\" height=\"260\" srcset=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-3.jpg 600w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-3-300x300.jpg 300w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-3-150x150.jpg 150w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-3-420x420.jpg 420w\" sizes=\"auto, (max-width: 260px) 100vw, 260px\" \/>In a certain, not 100% \u201cBitcoin-maximalist-compliant\u201d sense, these products help make Bitcoin as pristine collateral a more widespread option.<\/p>\n<p>However, the \u201cdownside\u201d is also clear:<\/p>\n<p>More actual Bitcoin is allocated in the hands of a few licensed custodians who, in extreme cases, might be compelled to hand over their Bitcoin to the Treasury if a repeat of E.O. 6102 or similar measures were enacted due to financial calamities in the public coffers of the corresponding nation-state.<\/p>\n<p>If you\u2019re looking to use Bitcoin-backed tokens in DeFi, kBTC is among the most reliable options available.<\/p>\n<p>For long-term storage of your life savings, however, you might prefer to hold the real thing and secure it carefully, with the keys fully under your control.<\/p>\n<p><em>&gt;&gt;&gt; <strong>Read more<\/strong>: <a href=\"https:\/\/bitcoinvn.io\/insights\/buy-and-sell-kbtc-in-vietnam\/\" target=\"_blank\" rel=\"noopener\">How to buy and sell kBTC in Vietnam<\/a><\/em><\/p>\n<h2>How do I secure my kBTC?<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-13750\" src=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-4.jpg\" alt=\"Ledger Nano S Plus box showing Ethereum support for token storage\" width=\"375\" height=\"498\" srcset=\"https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-4.jpg 600w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-4-226x300.jpg 226w, https:\/\/bitcoinvn.io\/insights\/wp-content\/uploads\/2024\/11\/kbtc-bitcoinvn-4-316x420.jpg 316w\" sizes=\"auto, (max-width: 375px) 100vw, 375px\" \/>Since kBTC is not \u201cthe real thing,\u201d Bitcoin-only wallets like <a href=\"https:\/\/bitcoinvn.io\/shop\/product\/coldcard-mk4\/\" target=\"_blank\" rel=\"noopener\">Coldcard<\/a> and <a href=\"https:\/\/bitcoinvn.io\/shop\/product\/blockstream-jade\/\" target=\"_blank\" rel=\"noopener\">Blockstream Jade<\/a> are not an option here.<\/p>\n<p>kBTC is a tokenized asset issued by Kraken, meaning it requires hardware wallets compatible with the chains where kBTC is hosted.<\/p>\n<p>Currently, <a href=\"https:\/\/bitcoinvn.io\/?deposit=usdttrc20&amp;settle=kbtceth\" target=\"_blank\" rel=\"noopener\">kBTC is available on Ethereum mainnet<\/a> and <a href=\"https:\/\/bitcoinvn.io\/?deposit=usdttrc20&amp;settle=kbtcopt\" target=\"_blank\" rel=\"noopener\">Optimism<\/a>, both supported by all <a href=\"https:\/\/bitcoinvn.io\/shop\/product-category\/hardware-wallets\/trezor\/\" target=\"_blank\" rel=\"noopener\">Trezor<\/a> and <a href=\"https:\/\/bitcoinvn.io\/shop\/product-category\/hardware-wallets\/ledger\/\" target=\"_blank\" rel=\"noopener\">Ledger models<\/a>.<\/p>\n<p>Keep in mind, however, that kBTC and similar crypto assets are not a replacement for a <a href=\"https:\/\/bitcoinvn.io\/custody\/\" target=\"_blank\" rel=\"noopener\">long-term Bitcoin strategy<\/a>.<\/p>\n<p>A <a href=\"https:\/\/bitcoinvn.io\/insights\/multivendor-multisig\/\" target=\"_blank\" rel=\"noopener\">secure multisig setup<\/a> with steadily growing Bitcoin savings remains essential.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kraken\u2019s kBTC is now available on BitcoinVN, giving users in Vietnam another wrapped Bitcoin option after trust in wBTC weakened under new custody concerns.<\/p>\n","protected":false},"author":14,"featured_media":13747,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10549],"tags":[],"class_list":["post-13766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured-sub-panel"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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