Centralized Exchanges Take the Spotlight

This week’s crypto market developments saw major announcements from leading platforms like Kraken, Coinbase, Polkadot, WazirX, and Bitget Wallet. Kraken introduced $kBTC, a Bitcoin-backed token aimed at expanding its utility across Ethereum and OP Mainnet. Meanwhile, Coinbase doubled leverage for perpetual futures trading, providing a boost for both retail and institutional traders. Polkadot’s partnership with Banxa and Polimec aims to bridge Web2 and Web3.

Additionally, WazirX revealed 240,000 user wallets as part of a court order. Finally, Bitget Wallet joined forces with 1inch to enhance decentralized trading, reflecting the platform’s ongoing growth and user adoption. Keep reading till the end to know about the details of all these exciting news.

Kraken Launches $kBTC: Bitcoin-Backed Token for Ethereum and OP Mainnet

First of all, Kraken crypto exchange introduced $kBTC this week which is an ERC-20 token backed 1:1 by Bitcoin. This will give holders expanded opportunities to use their Bitcoin across Ethereum and OP Mainnet. Each unit of $kBTC is fully backed by Bitcoin in Kraken’s custody, ensuring security and transparency. Moreover, the token allows broader Bitcoin utility in decentralized applications (dApps).

Kraken’s custody of $kBTC is safeguarded by Kraken Financial, a Wyoming-chartered institution, providing regulatory support. The $kBTC smart contract was audited by Trail of Bits, ensuring a secure platform for users. With future compatibility for non-EVM ecosystems and partnerships with platforms like deBridge and Yearn, $kBTC is set to play a key role in the expanding DeFi space.

Coinbase Increases Leverage to 20x for Perpetual Futures Trading

Coinbase has boosted leverage for perpetual futures trading, now offering up to 20x leverage for eligible retail and institutional traders. This upgrade, shared on Coinbase’s official channels, allows users to maximize positions and potential profits, doubling the previous limit of 10x.

Institutional traders can access the increased leverage via Coinbase International Exchange, while retail traders can utilize Coinbase Advanced. The platform ensures robust risk management, with leverage available across contracts for positions between $1M and $1.5M. This move aligns with Coinbase’s efforts to attract traders with advanced tools, competing with platforms like Binance and MEXC.

Polkadot Partners with Banxa and Polimec to Bridge Web2 and Web3

In another important update, Polkadot announced a collaboration with Banxa and Polimec to simplify user participation in Web3 projects. This partnership allows users to invest in blockchain initiatives using credit cards, easing the process of entering the crypto space.

Banxa, a fiat-to-crypto gateway, and Polimec, a decentralized fundraising protocol, enable users to buy tokens like $DOT, $USDC, and $USDT with traditional currencies such as EUR and USD. This initiative targets making blockchain investments more accessible, particularly for those unfamiliar with crypto, by bridging the gap between Web2 and Web3.

WazirX Discloses 240,000 User Crypto Wallets After Court Order

WazirX, a leading Indian crypto exchange, disclosed details of around 240,000 user wallets following a court order from Singapore’s High Court. The information is meant to be submitted to the court as part of the restructuring process for Zettai Pte Ltd, with creditors also receiving the data.

Contrary to expectations of fewer wallets, WazirX revealed a vast network of wallet addresses, which the exchange claims is typical for its 4.3 million registered users. The company emphasized its commitment to transparency, noting that the data release aligns with its goal to be open with its users. WazirX is also consolidating its wallets and plans to introduce Proof of Reserves (POR) with third-party custodians, to enhance trust and transparency.

Bitget Wallet Partners with 1inch to Boost Multichain DEX Trading

Bitget Wallet, a leading non-custodial Web3 provider, partnered this week with DEX aggregator 1inch to enhance its Swap function. This collaboration will offer users better access to decentralized trading with improved pricing and minimal fees, thanks to 1inch’s advanced routing algorithms.

In Q3 2024, Bitget Wallet saw significant growth, with Swap activity up by 125%, dApp usage rising by 128%, and token transfers increasing by 175%. Africa led the way with a 413% surge in user activity, followed by South Asia and the Middle East. The integration with 1inch provides real-time access to hundreds of DEXs across 50 blockchains, boosting trading flexibility.

Conclusion

This week highlighted the evolving role of centralized exchanges in shaping the crypto landscape. As platforms like Kraken, Coinbase, and WazirX continued to innovate and prioritize transparency, it’s clear that user trust and functionality are key to staying competitive. With exciting partnerships, increased leverage, and a focus on bridging the gap between Web2 and Web3, the future of crypto trading is becoming more dynamic and accessible. Stay tuned as these developments pave the way for even more advancements in the space.