Exchange leader Kraken will deploy Ink blockchain in 2025, with its testnet expected to launch this year.
Global crypto exchange Kraken plans to introduce an in-house developed blockchain called Ink, according to Bloomberg. With that, Kraken will step into the DeFi territory to allow developers to deploy DeFi use cases like decentralized exchanges (DEXs), lending and borrowing protocols, and more. That puts Kraken, a centralized exchange (CEX), in the same category as Binance and Coinbase–CEXs that have deployed and are involved in the operations of their own blockchains.
Ink will be an Ethereum layer-2 blockchain and join the Optimism Superchain ecosystem–a network of blockchains using Optimism’s OP stack and working closely to breed high interoperability with each other. They also coordinate on building an ecosystem of shared decentralized values, offering a trustless, powerful, and scalable experience for developers and end users. The Ink testnet is set to rollout sometime this year, allowing developers to experiment on it before the eventual 2025 mainnet launch.
An announcement made by Kraken mentions Ink’s goal is to offer a “capital-efficient” ecosystem in which “innovation thrives, community is prioritized, and the benefits are enjoyed by all.”
Kraken Follows Binance and Coinbase in Launching Blockchain Networks
Kraken’s plan to deploy Ink follows Binance and Coinbase successfully deploying and overseeing their blockchain networks, which are adding heavy revenues into the exchanges’ pockets. Binance’s BNB Smart Chain has existed for a while now and was the option that people needed when looking for a scalable, programmable blockchain. While users have gone to the Ethereum network’s layer-2s as that ecosystem developed, many still stick to the BNB Smart Chain for its Binance ties and a widely developed DeFi ecosystem.
Coinbase’s Base blockchain has become a phenomenon ever since its release last year. The blockchain is witnessing massive usage by end users and tremendous developer interest. Coinbase, acting as a sequencer to process transactions on the layer-2 rollup before they go to Ethereum, has raked in over $50 million in processing fees in Q2 2024.
Kraken aims to do the same with Ink, collecting revenues as it seeks to offer top-notch DeFi services to complement its long-existing centralized digital asset services. Moreover, with Ink’s deployment into the Optimism Superchain next year, it will join its rival Base, which is also part of the same ecosystem. Base, too, is built using the OP Stack. Furthermore, Ink has no plans to bring a native token to its ecosystem.
Kraken’s goal is to connect its centralized offerings to a whole host of DeFi implementations, facilitating a surge of users into the DeFi ecosystem. The exchange will ensure all DeFi protocols integrated with its Kraken Wallet app, including DEXs and yield platforms, will be found on the blockchain. Moreover, users can effortlessly take their crypto from the exchange to Ink, with features of also using seamless on-ramp and off-ramp facilities for crypto to cash and cash to crypto scenarios.
