Kraken Crypto Exchange Set to Launch Own Blockchain in 2025

After more than ten years as a leading digital asset exchange, U.S.-based crypto platform Kraken is set to unveil its own blockchain. According to a report from Bloomberg, Kraken’s network is expected to launch in early 2025.

The forthcoming blockchain, named Ink, will focus on supporting decentralized applications, allowing users to trade, lend, and borrow cryptocurrencies without relying on intermediaries.

Kraken to Introduce L2 Blockchain

Ink will operate as a layer-2 (L2) network built on the Optimism Superchain, a framework that fosters an ecosystem of blockchains sharing a unified codebase while benefiting from Ethereum’s security, governance, and principles. Kraken stated that the L2 chain aims to bridge the gap between centralized and decentralized realms in the crypto landscape, facilitating seamless interactions with decentralized finance (DeFi) applications.

In an interview with Bloomberg, Ink founder Andrew Koller announced that a testnet for the network will be launched later this year, providing developers with an opportunity to experiment with applications for the blockchain. Kraken and the Ink team plan to open the network for both retail and institutional users in the first quarter of 2025, with events for developers scheduled throughout the rest of the year.

Notably, Kraken will not be creating its own token to accompany the new blockchain.

Kraken Joins Binance and Coinbase

Once Ink launches in the upcoming months, multiple decentralized exchanges (DEXs) and aggregators will be operational on the network. Kraken anticipates that real-world assets and sophisticated lending solutions will eventually be available on Ink, aiming to enhance the DeFi experience by making it more user-friendly and cost-effective.

Importantly, Kraken plans to act as Ink’s sequencer during the initial phases of the blockchain, managing and organizing transactions. This role is expected to evolve towards decentralization, with responsibilities distributed among various network participants.

This development places Kraken alongside a growing list of cryptocurrency exchanges that are establishing their own blockchains to increase revenue and user engagement. Coinbase took this step in August 2023 with its chain, Base, which has seen significant success since its launch. Binance’s BNB Chain, on the other hand, has been a prominent contender in the industry for an extended period.

Additionally, Kraken has been branching out to different areas within the crypto sector. The exchange recently announced its Wrapped Bitcoin, dubbed kBTC, which will be available on the Ethereum and OP Mainnet chains.