Kraken is set to launch its proprietary blockchain, Ink, in early 2025. This innovative platform will enable decentralized applications (dApps) focused on trading, borrowing, and lending, eliminating the need for intermediaries.
Ink is designed as a Layer-2 blockchain utilizing Optimism’s OP Stack, which powers Coinbase’s Base—one of the foremost DeFi platforms since its inception.
In a recent interview with Bloomberg, Andrew Koller, the creator of Ink, revealed that a test version of the blockchain will launch later this year, providing early access exclusively to developers.
Initially, Kraken will act as the sequencer for the blockchain, overseeing transactions and generating income through this role. Eventually, this function will be transitioned to multiple decentralized participants.
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“I’m confident they will decentralize their sequencer, sacrificing sub-second block times and MEV revenue, and progressing to L2 Stage 2 as soon as possible. The unified, coherent rollup-centric roadmap is developing precisely as intended!” said crypto entrepreneur Matt Henderson in a post on X formerly Twitter.
Various prominent crypto exchanges have developed their own blockchains, inspired by the success of Binance, the leading digital asset exchange. Binance’s BNB Chain and its corresponding token have achieved significant global traction.
Coinbase’s foray into this arena with Base has also proven successful, with the platform witnessing a 300% increase in transactions during the second quarter. Unlike its competitors, Koller has confirmed that Kraken does not intend to issue a native token.
A team of approximately 40 staff members is currently developing Ink, with the exchange actively hosting developer-oriented events, including participation in Devcon in Thailand.
Besides INK, Kraken has rolled out several significant announcements this week. The platform is also launching a Bitcoin-backed asset referred to as ‘KBTC,’ which can be traded natively on the Ethereum blockchain.
Ongoing Regulatory Battle with the SEC
On the regulatory side, Kraken is contesting the SEC’s claims that certain digital assets offered by the exchange are unregistered securities. The SEC has charged Kraken with violating federal securities laws, pointing to assets such as ADA, ALGO, and SOL.
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Kraken is pushing back against these claims, asserting that these assets do not fulfill the legal criteria for securities under U.S. law and accusing the SEC of overstepping its bounds with vague guidelines.
The exchange has sought a jury trial, claiming that the SEC has repeatedly hindered its efforts to register or collaborate by issuing contradictory rulings and guidance. Additionally, Kraken has recently delisted Monero (XMR) from its European market due to regulatory changes.
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