Kraken Announces Plans to Launch Its Blockchain in 2025

Kraken, one of the world’s largest digital asset exchanges, has become the latest crypto exchange to tease the launch of a native network. Per a Bloomberg report on Thursday, Kraken is set to launch its layer-2 blockchain next year.

Termed Ink, the Ethereum sidechain will build on technology similar to that of Coinbase’s Base network. Notably, the project utilizes the Optimism Superchain, popularly used among Ethereum layer 2s.

Furthermore, Kraken announced it would launch Ink for testnet later in the year, with the team targeting a quarter-one mainnet launch. The exchange also revealed it does not include issuing a native token for its blockchain.

Kraken Looks to Leverage Growing L2 Narrative

The US-based exchange stated that it was building Ink to simplify the DeFi process for a broader audience and make it accessible and cost-effective for users. The layer 2 network will also enable users to trade, borrow, and lend tokens without intermediaries.

It bears mentioning that seeing a crypto exchange develop its blockchain is not new. Major crypto and even non-crypto firms have ventured into the sector, opting to use their blockchain to drive adoption and visibility.

Exchanges like Coinbase, which journeyed into the sector more than a year ago, have shown how lucrative it is. For context, Base hit 2 million daily active addresses in September, driven by innovations and growing traction. Binance made a similar foray into the blockchain industry with its BNB Chain.

Kraken Makes Substantial Progress

Since its birth in 2011, Kraken has been expanding into new product areas. This year, the exchange recorded notable breakthroughs, including the acquisition of Netherlands-based crypto broker Coin Meester B.V. (BCM), a restaking feature for non-US customers.

Kraken also launched Kraken Wrapped Bitcoin (kBTC), a tokenized asset fully backed by Bitcoin. The ERC-20 token aims to expand liquidity by allowing users access to decentralized applications using Bitcoin.