One of the world’s oldest cryptocurrency exchanges, Kraken, is launching a blockchain early next year.
Called Ink, the blockchain will host decentralized applications that enable trading, borrowing, and lending of tokens independently and without intermediaries involved.
Kraken Launches “Ink” Blockchain, No Token Planned
Kraken is reportedly launching its own Layer 2 blockchain, similar to the move made by its competitor, Coinbase. The new network, called Ink, uses similar technology to Coinbase’s Layer 2 platform, Base, which has grown to become a powerhouse in the DeFi space since its launch. This has to be successful project since, just recently, Solana’s Co-Founder Anatoly Yakovenko discussed Base Layer 2’s rapid growth, highlighting its impact on Ethereum market position.
Ink will launch a testnet later this year, giving developers an opportunity to start building applications on the chain. According to Andrew Koller, Ink’s founder, the network is expected to open in the first quarter of next year for both retail and institutional users.
The move also signifies the latest attempt by the cryptocurrency exchange to expand further into the DeFi ecosystem and provide more decentralized services, joining its rival Coinbase, which did the same with Base.
Following the example of its largest competitors, such as Binance and Coinbase, Kraken is releasing its blockchain—a move that catalyzes user growth and revenue increases. Similar tactics have paid off for Binance and its BNB Chain, a global favorite.
In the case of Coinbase, its Base network saw a 300% increase in transaction volume in Q2, primarily because of new app and meme coin activity.
Kraken’s blockchain should go live early next year. It supports the facilitation of dApps with no intermediary services. It does not plan to issue a native token, however, said Koller, making it substantially different from the approach decided upon by Binance’s and Coinbase’s strategy.
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