Kraken to Launch Decentralized Trading Application Blockchain Next Year

Kraken has announced plans to launch its blockchain, dubbed Ink, in early 2025. The blockchain development positions Kraken alongside fellow crypto giants like Coinbase and Binance, who have already established their blockchain networks.

Ink will be built as a layer-2 (L2) network on the Optimism Superchain, leveraging the shared security, governance, and values of Ethereum’s ecosystem. Kraken emphasizes that Ink will bridge the gap between centralized and decentralized worlds in crypto, enabling users to seamlessly access and utilize decentralized finance (DeFi) applications.

Designed primarily for DeFi, Ink will allow users to trade, lend, and borrow cryptocurrencies without intermediaries. The platform will host a range of decentralized exchanges (DEXs) and aggregators upon launch, with plans to eventually integrate real-world assets and advanced lending applications.

Kraken’s approach aims to simplify the DeFi experience, making it more cost-effective and user-friendly. While initially acting as the network’s sequencer, responsible for organizing and managing transactions, Kraken plans to decentralize this function, gradually sharing it among multiple network participants.

A testnet for Ink, where developers can experiment with applications, will be launched later this year. Kraken and the Ink team anticipate opening the network to retail and institutional users in the first quarter of 2025.

Kraken to Launch Ink with Blockchain Giants as Targets

The launch of Ink signals a significant shift for Kraken, mirroring the trend of established crypto exchanges venturing into blockchain development. Notably, Coinbase’s Base, launched in August 2023, has already garnered considerable success as a major DeFi platform. Binance’s BNB Chain, a long-standing player in the space, remains a prominent network.

Moreover, Kraken’s foray into blockchain development is a strategic move to expand its reach and attract a wider audience. This initiative, coupled with recent ventures like the launch of its Wrapped Bitcoin (kBTC), demonstrates Kraken’s commitment to expanding its presence in the diverse landscape of the crypto industry.

Kraken has been steadily expanding its services in recent years, and the launch of its blockchain signifies a significant shift towards building a more robust and decentralized ecosystem.

Additionally, the move comes on the heels of Coinbase’s successful foray into the blockchain space with its Base chain, launched in August 2023. Base has garnered significant attention for its user-friendly approach and impressive performance since its inception. Furthermore, Binance, a dominant force in the crypto market, has long established its BNB Chain, which has cemented its position as a leading network.