Kraken, one of the most popular cryptocurrency exchanges, is preparing to launch its own blockchain network publicly in early 2025. The movement focuses on decentralized finance (DeFi) services such as trading, lending, and borrowing without intermediaries.
Cryptocurrency exchange Kraken launches its own blockchain network
The upcoming blockchain, named Ink, will operate similarly to Coinbase Global Inc.’s Base. Launched over a year ago, Base has grown into a leading DeFi platform. According to Ink founder Andrew Koller, a testnet for developers will be launched later this year to allow early experimentation with applications.
The platform will be fully accessible to retail and institutional users by the first quarter of next year, according to a Bloomberg report. However, despite the blockchain launch, Kraken has no plans to issue tokens for Ink, as Koller revealed.
Kraken aims to streamline the complexity often associated with DeFi. By focusing on a user-friendly experience, the company hopes to make decentralized finance tools more accessible. “We want people to feel like they’re doing something familiar,” Kohler explained. He described Ink as offering an “Apple-like” interface.
Additionally, the Ink app will be integrated into the Kraken Wallet and aims to make DeFi services, including yield generation, cheaper and easier to consume. Ink will support over 12 applications including decentralized exchanges and DApp aggregators upon initial release. Koller also said the chain could host real-world assets and advanced lending platforms in the future.
At the moment, the main function of the blockchain is managed by Kraken as a sequencer of the chain, responsible for organizing transactions. However, over time, this functionality becomes decentralized and allows multiple parties to participate. Sequencing has proven to be highly profitable. Coinbase generated $53 million from its sequencer role in the second quarter of 2024.
Intensifying competition
Seeing the successful efforts of Binance and Coinbase, cryptocurrency exchanges are increasingly turning their attention to blockchain development. Binance’s BNB chain has been widely adopted, with Coinbase’s Base recording a 300% increase in transactions in the second quarter of 2024. This surge was primarily driven by new decentralized applications (DApps) and meme coin activity.
Meanwhile, about 40 Kraken employees are currently working on the Ink project to compete with global cryptocurrency exchange leaders. Kraken is also planning developer events, including a major event at Devcon in Thailand in November. The company continues to innovate in various markets and explores potential products with an eye toward an initial public offering (IPO). Previous reports suggested that Kraken may raise a final funding round before going public.
It is also important to note that Kraken’s plans unfold amid regulatory uncertainty. The exchange settled a lawsuit with the U.S. Securities and Exchange Commission (SEC) over its staking services in 2023, but faces allegations related to unregistered brokerage activities.
Also read: Binance launches GOATUSDT perpetual contract with 75x leverage
