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tBTC is an Ethereum (ERC-20) token designed to be backed 1:1 by bitcoin, and it is the first application created on the Keep Network. Unlike other BTC-backed Ethereum tokens (such as wBTC), tBTC is trustless and non-custodial. When tBTC is issued for BTC, there is no centralized trusted custodian required for the bitcoin. Instead, the BTC private keys are kept in encrypted off-chain containers provided by the Keep Network. Even though tBTC is “pegged” to BTC, note that Kraken’s tBTC markets are open, which means tBTC’s price can move away from BTC’s price.
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