Kraken to debut Ink blockchain for DeFi trading and lending next year

Kraken announced today it will launch its own blockchain for DeFi trading and lending in early 2025. Dubbed “Ink,” the chain will adopt similar technology to Coinbase’s Base, aiming to make DeFi more user-friendly and accessible through the Kraken Wallet app.

Introducing Ink.

A single, integrated DeFi ecosystem here to make onchain easier.

Join us: https://t.co/kKPhCeRLFf pic.twitter.com/tH4nqENKZ7

— ink (@inkonchain) October 24, 2024

“It’s a very easy-to-use, Apple-esque experience,” Andrew Koller, Ink’s founder, told Bloomberg. “Over time, our users will have these two centralized and decentralized ecosystems playing with each other. We want you to feel that you are doing something familiar.”

The team plans to launch a developer testnet later this year, which allows builders to experiment with building dApps on Ink. Koller expects its mainnet to be available to retail and institutional users in early 2025.

While DeFi has been around for several years, it can be complex for newcomers. Kraken wants to address this issue with Ink. At launch, the platform is expected to feature over a dozen apps, including decentralized exchanges and aggregators, with plans to expand to real-world assets and advanced lending apps.

Kraken does not plan to issue its own token, unlike other crypto exchanges that have seen remarkable growth from such strategies. The company will initially manage the sequencing of transactions on the network, a role that will later be decentralized.

Kraken’s move into the blockchain space aligns with the growing trend among crypto exchanges to launch their own blockchains. Coinbase, the world’s leading crypto exchange, launched its layer 2 network Base last year, designed to enhance the functionality of dApps on Ethereum, providing faster and cheaper transactions.

The latest development comes after Kraken announced the launch of kBTC, a wrapped Bitcoin product on Ethereum and OP Mainnet, backed by Bitcoin from Kraken Financial. The company is also exploring a potential initial public offering and expanding into new markets.