Kraken To Launch DeFi-Focused 'Ink' Blockchain In Early 2025

Kraken, one of the leading centralized cryptocurrency exchanges, is set to launch its own blockchain, “Ink,” in early 2025.

What Happened: This new blockchain will focus on decentralized finance (DeFi) applications, aiming to offer users a streamlined platform for trading, borrowing, and lending tokens without relying on intermediaries, Bloomberg reported.

The move marks a significant shift for Kraken as it ventures further into the DeFi space, expanding beyond its centralized exchange roots.

Ink is expected to make the DeFi process more accessible and cost-effective for a broader audience, simplifying the user experience and lowering barriers for those looking to engage with decentralized services.

Kraken's decision to build Ink follows in the footsteps of other prominent exchanges like Binance and Coinbase (NASDAQ:COIN), both of which have launched their own blockchains—BNB Smart Chain (CRYPTO: BNB) and Base, respectively.

While Ink will not have its own native token, Kraken plans to integrate DeFi tools, including decentralized exchanges (DEXs) and yield-generating platforms, into its Kraken Wallet app.

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In an interview with Bloomberg, Andrew Koller, founder of Ink, explained that the goal is to allow users to move seamlessly between Kraken's centralized services and the decentralized features offered by Ink.

The blockchain will roll out a developer testnet later in 2024, allowing developers to experiment with decentralized applications (DApps) ahead of the full launch.

Kraken aims to capitalize on the growing demand for DeFi services with Ink.

At launch, Kraken will act as Ink's sequencer, managing and organizing network transactions, and generating revenue from this role.

The revenue model mirrors successful strategies employed by Binance and Coinbase, with the latter earning $53 million in sequencer revenue during the second quarter of 2024.

To enhance user experience, Ink will debut with more than a dozen DApps, with future plans to introduce real-world assets and advanced lending platforms.

The goal is to provide a diverse range of DeFi services that attract a wide audience.

Kraken's ambitions with Ink come on the heels of its expanding product offerings.

Earlier this month, the exchange launched a derivatives trading platform in Bermuda after receiving regulatory approval from the Bermuda Monetary Authority.

This new platform offers perpetual and fixed-maturity futures, positioning Kraken to capitalize on growing interest and volumes in the crypto derivatives market.

These developments will likely be a key topic of discussion at Benzinga's Future of Digital Assets event on November 19, where industry leaders will explore how platforms like Kraken are navigating the shift between centralized and decentralized finance.

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