Bitrabo Editorial
Kraken, a prominent cryptocurrency exchange based in the United States, is set to debut its own blockchain, Ink, in early 2025. This initiative is focused on empowering decentralized applications (dApps), allowing users to trade, borrow, and lend tokens without the need for middlemen.
Objectives for Kraken’s Ink Blockchain
A recent Bloomberg report highlights that Ink will leverage technology akin to Coinbase’s Base, which has quickly become a leading player in the DeFi space since its inception over a year ago.
Ink’s founder, Andrew Koller, shared that a testnet will be launched later this year to allow developers to experiment with applications before the blockchain becomes available to both retail and institutional users in the first quarter of 2025.
Created on the framework of Optimism’s Superchain, Ink aims to enhance user engagement with top-tier decentralized finance applications, protocols, and community initiatives, as outlined in a blog announcement by the company.
This new blockchain will integrate with the larger Ethereum ecosystem, benefiting from Ethereum’s security and contributing to the Superchain—a collective network of blockchains unified by security and governance standards.
Koller highlighted the distinctiveness of Ink as the only blockchain supported by a major Western exchange, prioritizing a “superior DeFi experience.” The mission is to cultivate a “capital-efficient” environment that encourages community engagement and innovation, ensuring that DeFi’s advantages are open to everyone.
The move towards launching a proprietary blockchain is part of a growing trend among cryptocurrency exchanges that have successfully expanded their revenue streams through blockchain projects.
Examples of this trend include Binance’s BNB Chain and Coinbase’s Base, both of which have effectively increased user interaction and transaction volumes.
Ink to Facilitate RWAs and Enhanced Lending Features
Upon its launch, Ink is projected to host a variety of applications, including decentralized exchanges and aggregators. Koller envisions that the blockchain will eventually cater to the real-world assets (RWAs) sector and advanced lending solutions.
Initially, Kraken will act as the chain’s sequencer, overseeing transaction management to generate income. However, Koller mentioned that this role will be decentralized over time, enabling multiple entities to share the operational duties.
Krakens’ ongoing development of Ink involves a dedicated team of around 40 members. The company is also organizing events for developers, including participation in Devcon in Thailand this November.
Established in 2011 in San Francisco, Kraken continues to broaden its service offerings while contemplating a potential initial public offering (IPO). However, like other players in the crypto sector, Kraken’s prospects might be swayed by impending changes in U.S. cryptocurrency regulations, particularly with the upcoming elections.
Last year, the exchange faced regulatory challenges when the U.S. Securities and Exchange Commission (SEC) accused it of functioning as an unregistered broker. In February 2023, Kraken resolved separate allegations related to its staking services.
Image created using DALL-E, chart sourced from TradingView.com.