Ink, Kraken’s new blockchain, will transform DeFi by making crypto trading, lending, and borrowing simpler and more accessible.
Kraken Prepares for Blockchain Launch
Kraken, a major U.S.-based crypto exchange, plans to launch its own blockchain, Ink, early in 2025. Known for its digital asset trading platform, Kraken aims to enhance decentralized finance (DeFi) applications by simplifying user engagement. The blockchain, called Ink, will focus on enabling secure, efficient decentralized transactions.
Layer-2 Network on Optimism Superchain
Ink will function as a layer-2 (L2) blockchain built on the Optimism Superchain, a structure designed for blockchains with shared Ethereum security and governance. The L2 setup aims to bridge centralized and decentralized crypto experiences, easing access to DeFi. Kraken’s use of the Optimism Superchain reinforces Ethereum’s influence on blockchain development.
Developer Testing Set for This Year
Ink founder Andrew Koller has confirmed that Ink’s testnet will launch by the end of this year. This step allows developers to test decentralized applications on Ink before it opens to broader use. The retail and institutional market rollout is expected in the first quarter of 2025, marking a significant shift in Kraken’s focus on decentralized tech.
Kraken Won’t Issue a New Token
Unlike other blockchain projects, Kraken will not release a proprietary token with Ink’s launch. This decision sets Ink apart, as it will rely on transaction fees and user engagement rather than token incentives. The decision suggests a focus on utility over speculation within DeFi.
Joining Competitors in Blockchain Development
The debut of Ink aligns Kraken with other major crypto exchanges, such as Coinbase and Binance, that have recently developed blockchains. Coinbase’s Base chain has grown since its August 2023 launch, and Binance’s BNB Chain remains a leading network. Kraken’s entry into this space reflects a trend where exchanges seek to strengthen user engagement by providing their blockchain.
Focus on Real-World Assets and Lending
Kraken plans to introduce decentralized exchanges and other financial services on Ink. Real-world assets and advanced lending applications could soon follow, making Ink an adaptable platform within DeFi. By removing intermediaries, Kraken intends to offer a streamlined and cost-effective DeFi experience.
Kraken to Act as Ink’s Sequencer Initially
Initially, Kraken will serve as Ink’s transaction sequencer, organizing and processing transactions on the network. However, this role is set to become decentralized over time, allowing other participants to take part in network management. This transition underscores Kraken’s commitment to a collaborative blockchain approach.
New Growth and DeFi Expansion
Kraken’s expansion into blockchain and DeFi reflects its growth strategy, which has also included Wrapped Bitcoin (kBTC) on Ethereum and OP Mainnet. This recent kBTC launch shows Kraken’s active role in bringing more digital assets to various chains, and Ink’s development continues this trajectory.
Looking Ahead: Innovation in Decentralized Finance
Kraken’s Ink network represents a step forward in DeFi accessibility and usability. With Ink’s launch, Kraken is poised to offer new ways for users to engage with decentralized financial tools, potentially reshaping the crypto landscape.
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