Kraken’s New Ink Blockchain Set to Launch in Early 2025

The US-based cryptocurrency exchange Kraken, recognized as the sixth largest by trading volume, is preparing to unveil its own blockchain, Ink, in early 2025. This innovative platform is designed to support decentralized applications (dApps), allowing users to trade, borrow, and lend tokens without the need for intermediaries.

Objectives of Kraken’s Ink Blockchain

As reported by Bloomberg, the Ink blockchain will employ technology akin to Coinbase’s Base, which has quickly ascended to become one of the leading DeFi platforms since its inception just over a year ago.

Andrew Koller, the creator of Ink, revealed that a testnet will launch later this year, enabling developers to explore applications before the blockchain becomes available to both retail and institutional users in the first quarter of 2025.

Built on Optimism’s Superchain, Ink is set to enhance user engagement with premier decentralized finance (DeFi) applications, protocols, and communities, according to a blog post released on Thursday.

The new blockchain aims to integrate with the broader Ethereum ecosystem by leveraging its security measures and becoming part of the Superchain—a collective network of blockchains that uphold shared security and governance principles.

Koller pointed out that Ink stands out as the sole blockchain backed by a prominent Western exchange, with a mission to develop an “optimal DeFi experience.” The platform’s objective is to create a “capital-efficient” ecosystem that emphasizes community participation and innovation, ensuring that the advantages of DeFi are available to everyone.

The introduction of a proprietary blockchain reflects a wider trend among crypto exchanges, which have witnessed substantial growth and revenue streams from their blockchain ventures.

Prominent examples include Binance’s BNB Chain and Coinbase’s Base, both of which have successfully increased user engagement and transaction volumes.

Ink’s Support for RWAs and Advanced Lending Solutions

At its inception, Ink is projected to host numerous applications, including decentralized exchanges and aggregators. Koller expects that the blockchain may eventually accommodate the real-world assets (RWAs) marketplace and complex lending applications.

Initially, Kraken will act as the chain’s sequencer, organizing and managing transactions for revenue generation. However, Koller has indicated that this function will transition to a more decentralized model, allowing various participants to share responsibilities.

Currently, around 40 team members are dedicated to the Ink project. The company is also planning developer-focused events, including participation in Devcon in Thailand this November.

Established in 2011 in San Francisco, Kraken has been broadening its range of products while eyeing a potential initial public offering (IPO). However, like many entities in the cryptocurrency sector, Kraken’s future could be shaped by upcoming changes in US cryptocurrency regulations, especially with the approaching elections.

The exchange faced regulatory challenges last year, when the US Securities and Exchange Commission (SEC) accused it of operating as an unregistered broker. In February 2023, Kraken resolved separate charges concerning its staking services.