US-based Kraken, the sixth-largest cryptocurrency exchange by volume, is preparing to launch its blockchain Ink in early 2025. This new platform aims to facilitate decentralized applications (dApps) and allows users to trade, borrow, and lend without the need for tokens. Intermediary.
Kraken’s Ink Blockchain Goals
According to a recent report from Bloomberg, Inc. will use technology similar to Base from Coinbase, which has quickly emerged as one of the largest DeFi platforms since its launch over a year ago.
Ink founder Andrew Kohler said a testnet will be introduced later this year to allow developers to experiment with their applications before the blockchain is rolled out to retailers and institutional users in Q1 2025. He said it would be.
Built on Optimism’s superchain, Ink is designed to increase user engagement with “top-level” decentralized finance (DeFi) applications, protocols, and communities, the company said in a blog post on Thursday. said.
The new blockchain leverages Ethereum’s security and aligns with the broader Ethereum ecosystem by joining Superchain, a unified network of blockchains that share security and governance standards.
Koller emphasized that Inc. is unique as the only blockchain backed by a major Western exchange focused on creating an “optimal DeFi experience.” The platform’s vision is to foster a “capital efficient” ecosystem that prioritizes community participation and innovation, while ensuring the benefits of DeFi are available to everyone.
The launch of its own blockchain is in line with a broader trend among crypto exchanges that are realizing significant growth and revenue generation from blockchain efforts.
Notable examples include Binance’s BNB Chain and Coinbase’s Base, both of which have been successful in increasing user engagement and transaction volumes.
Inc. that supports RWA and advanced lending applications
Ink plans to host more than a dozen applications at its launch, including decentralized exchanges and aggregators. Koller predicts that blockchain could eventually support the real world assets (RWA) sector and advanced lending applications.
Initially, Kraken plans to act as a sequencer on the chain, managing and organizing transactions to generate revenue. However, Koller suggested that this role will eventually be decentralized, allowing multiple parties to share responsibility.
Kraken continues to develop Ink, with approximately 40 team members dedicated to the project. The company is also planning events for developers, including attending Devcon in Thailand this November.
Founded in San Francisco in 2011, Kraken has expanded its product offerings while considering the possibility of an initial public offering (IPO). However, like many companies in the cryptocurrency space, Kraken’s future may be affected by future changes to U.S. cryptocurrency regulations, especially in light of the upcoming election.
The exchange came under regulatory scrutiny last year after the U.S. Securities and Exchange Commission (SEC) accused it of operating as an unregistered broker. In February 2023, Kraken settled another fee related to its staking service.
The daily chart shows that the total cryptocurrency market capitalization is $2.27 trillion. Source: TOTAL on TradingView.com
Featured image from DALL-E, chart from TradingView.com