Kraken to launch blockchain network in 2025

Kraken, whose founder donated $1 million in cryptocurrency to Donald Trump, plans to establish a blockchain network next year.

Kraken’s upcoming launch is called Ink, and according to Bloomberg, its blockchain design shares similarities with Base, Coinbase’s Ethereum (ETH) layer-2 network. California-based Kraken plans to become the second US crypto exchange to launch its own decentralized chain with smart contract support in early 2025.

Statements from the minds behind Ink revealed that the chain will be another Ethereum scaling solution, often referred to as L2s. Ink founder Andrew Koller said Kraken’s blockchain will allow retail and institutional market players to conduct trusted financial activities on-chain.

Like Base on Ethereum, Koller and his team designed Ink to host decentralized applications like DeFi lender Aave or Aerodrome, the largest DEX on Coinbase’s L2. Ink leverages Optimism’s developer stack, the same toolset that powers Base.

Coinbase’s Base has become DeFi’s fifth-largest chain, locking the most user deposits or total value of any Ethereum layer-2 network. According to DeFiLlama, users have invested over $2.4 billion in Base since its launch in August 2023. Only Ethereum, Tron (TRX), Solana (SOL), and Binance Smart Chain had larger TVLs.

The success of Base and Binance Smart Chain may give an idea of ​​how high a crypto exchange-backed blockchain can climb in a short time. Kraken is one of the largest digital asset trading platforms along with Binance and Coinbase.

Ink’s statement could also represent Kraken’s bullish outlook on the post-election US crypto landscape. In June, Kraken founder Jesse Powell donated $1 million, mostly ETH, to Republican candidate and former President Donald Trump.

Trump’s chances of winning the November presidential election have soared on prediction platforms such as Kalshi and Polymarket.

In related news, Powell’s crypto exchange has been locked in litigation over allegations made by the Securities and Exchange Commission. While a judge decided to move forward with the SEC’s lawsuit, the company denied operating as an unregistered securities exchange and requested a jury trial.

I personally donated $1 million (mostly #ETH) with @realdonaldtrump.

The crypto industry has been under attack by Elizabeth Warren, Gary Gensler and others for too long. Despite overwhelming bipartisan efforts by Congress to set clear rules, the Biden White House… pic.twitter.com/Ksxf3P2oCb

– Jesse Powell (@jespow) June 28, 2024