Kraken, one of the oldest and most prominent cryptocurrency exchanges, is set to launch its own blockchain named Ink in early 2025. This initiative marks a significant expansion into the decentralized finance (DeFi) space, allowing users to trade, borrow, and lend tokens without intermediaries.
Key Features of Ink
- Decentralized Applications (DApps): Ink will support a variety of DApps, focusing initially on decentralized exchanges (DEXs) and aggregators. The platform aims to simplify user engagement with DeFi services, making it more accessible to a broader audience.
- Testnet Launch: A testnet for developers will be available later this year, enabling experimentation with applications before the full launch.
- Ethereum Rollup: Ink is designed as an Ethereum rollup, which means it will operate on top of the Ethereum blockchain to facilitate faster and cheaper transactions. This approach is similar to that taken by Coinbase with its Base blockchain.
- Integration with Kraken Services: The blockchain will allow seamless interaction between Kraken’s centralized services and its decentralized features. Notably, Kraken will act as Ink’s sequencer, managing transactions and generating revenue from this role.
- No Native Token: Unlike many other blockchains, Ink will not have its own native token at launch but will integrate various DeFi tools within the Kraken Wallet app.
Strategic Context
Kraken’s move follows trends set by other major exchanges like Binance and Coinbase, both of which have launched their blockchains. This shift reflects a growing demand for DeFi services and a desire to provide users with more control over their assets in a decentralized manner. As Kraken prepares for this launch, it aims to capitalize on the expanding interest in DeFi, positioning itself as a key player in the evolving cryptocurrency landscape.