Crypto Exchange Kraken to Launch Its Own Blockchain Next Year: Report
Following over a decade of operating as one of the largest digital asset trading platforms, the United States-based crypto exchange Kraken has decided to launch its own blockchain. A Bloomberg report disclosed that Krakens network would likely go live in early 2025.
The new blockchain, dubbed Ink, would be designed primarily for decentralized applications enabling users to trade, lend, and borrow cryptocurrencies without intermediaries.
Kraken to Launch L2 Blockchain
Ink will be a layer-2 (L2) network built on the Optimism Superchain, which powers an ecosystem of blockchains built on a common standard codebase that shares Ethereums security, governance, and values. Kraken said the L2 chain would remove the friction between centralized and decentralized worlds in the crypto ecosystem, enabling users to engage with decentralized finance (DeFi) applications easily.
During an interview with Bloomberg, Ink founder Andrew Koller said a testnet for the network would be launched later this year, allowing developers to try apps for the blockchain. Kraken and the Ink team intend to open the network to retail and institutional users in the first quarter of 2025. Plans are already in place for developers events geared towards developing the network for the remaining months of the year.
Notably, Kraken will not be issuing its own token alongside the new blockchain.
Kraken Joins Binance and Coinbase
Upon Inks debut in the coming months, several decentralized exchanges (DEXs) and aggregators will be live on the network. Kraken believes real-world assets and advanced lending applications will eventually launch on Ink. The crypto exchange is looking to simplify the DeFi experience for users, making it more cost-effective and intuitive.
It is worth mentioning that Kraken plans to be Inks sequencer in the chains early stages, organizing and managing transactions on the network. This function would gradually become decentralized and shared among multiple network participants.
The latest development has added Kraken to a growing list of crypto exchanges launching their own blockchains as part of efforts to grow revenue and user engagement. Coinbase joined the bandwagon in August 2023, and its chain, Base, has performed remarkably well since its launch. Binances BNB Chain has been long-standing and remains one of the leading networks.
Meanwhile, Kraken has been expanding to other sectors of the crypto industry. The exchange recently unveiled its Wrapped Bitcoin, kBTC, which will be launched on the Ethereum and OP Mainnet chains.
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