Crypto Exchange Kraken to Launch Its Own Blockchain Next Year: Report

After more than a decade of operating as one of the largest digital asset trading platforms, US-based crypto exchange Kraken has decided to launch its own blockchain. A Bloomberg report revealed that Kraken’s network would likely go live in early 2025.

The new blockchain, called Ink, would be primarily designed for decentralized applications that allow users to trade, lend and borrow cryptocurrencies without intermediaries.

Kraken to launch L2 Blockchain

Ink will be a Layer 2 (L2) network based on the Optimism Superchain, powering an ecosystem of blockchains based on a common standard code base that shares Ethereum’s security, governance and values. Kraken said the L2 chain would remove friction between the centralized and decentralized worlds in the crypto ecosystem, allowing users to interact with decentralized finance (DeFi) applications easily.

During an interview with Bloomberg, Ink founder Andrew Koller said a testnet for the network would be launched later this year, allowing developers to test applications for the blockchain. Kraken and the Ink team intend to open the network to retail and institutional users in the first quarter of 2025. There are already plans for developer events aimed at developing the network in the remaining months of the year.

Notably, Kraken will not issue its own token alongside the new blockchain.

Kraken joins Binance and Coinbase

Following Ink’s debut in the coming months, several decentralized exchanges (DEX) and aggregators will be live on the network. Kraken believes real-world assets and advanced lending applications will launch on Ink. The crypto exchange seeks to simplify the DeFi experience for users, making it more cost-effective and intuitive.

It is worth mentioning that Kraken plans to be the sequencer for Ink in the early stages of the chain, organizing and managing transactions on the network. This function would be gradually decentralized and shared among various network participants.

The latest development has added Kraken to a growing list of crypto exchanges launching their own blockchains as part of efforts to increase revenue and user engagement. Coinbase joined the bandwagon in August 2023 and its chain, Base, has performed well since its launch. Binance’s BNB chain has been around for a long time and remains one of the leading networks.

Meanwhile, Kraken has been expanding into other sectors of the crypto industry. The exchange recently introduced its Wrapped Bitcoin, kBTC, which will be released on the Ethereum and OP Mainnet chains.

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