Kraken, one of the leading centralized cryptocurrency exchanges, plans to launch its own blockchain “Ink” in early 2025.
What Happened: This new blockchain focuses on decentralized finance (DeFi) applications, offering users a streamlined platform to trade, borrow, and lend tokens without relying on intermediaries. The aim is to do so, Bloomberg reported.
This move marks a major shift for Kraken as it moves further into the DeFi space and expands beyond its centralized exchange roots.
Ink is expected to make the DeFi process more accessible and cost-effective for a wider range of users, simplifying the user experience and lowering barriers for users looking to participate in decentralized services .
Kraken’s decision to build Ink follows in the footsteps of other prominent exchanges like Binance and Coinbase COIN, both of which have launched their own blockchains, the BNB smart chain BNB/USD and Base, respectively.
Although Ink does not have its own native token, Kraken plans to integrate DeFi tools such as decentralized exchanges (DEXs) and yield generation platforms into the Kraken Wallet app.
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Ink founder Andrew Koller explained in an interview with Bloomberg that the goal is to allow users to move seamlessly between Kraken’s centralized services and the decentralized features Ink provides.
Blockchain will roll out a developer testnet in late 2024, allowing developers to experiment with decentralized applications (DApps) ahead of a full-scale launch.
Kraken aims to use Ink to capitalize on the growing demand for DeFi services.
At launch, Kraken will act as a sequencer for Ink, managing and organizing network transactions and generating revenue from this role.
This revenue model reflects the successful strategy adopted by Binance and Coinbase, with the latter earning $53 million in sequencer revenue in the second quarter of 2024.
To improve the user experience, Ink debuts with more than a dozen DApps and plans to introduce real-world assets and an advanced lending platform in the future.
The goal is to offer a variety of DeFi services that appeal to a wide audience.
Kraken’s ambitions for Ink come on the heels of expanding its product offering.
The exchange launched its derivatives trading platform in Bermuda earlier this month after receiving regulatory approval from the Bermuda Monetary Authority.
The new platform offers perpetual and fixed maturity futures and positions Kraken to capitalize on the growing interest and trading volume in the crypto derivatives market.
These trends are likely to be key topics discussed at Benzinga’s “Future of Digital Assets” event on November 19th, where industry leaders will argue that platforms like Kraken will We will explore how they are navigating the transition between finance and decentralized finance.
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