Kraken Exchange Set to Launch Its Own Blockchain ‘Ink’ in 2025

Sentiment Status: Positive

Kraken’s founder, Andrew Koller, announced that the Ink blockchain will be introduced in 2025, with a testnet launching in late 2024 for developers to begin experimenting with decentralized applications (DApps).

Kraken Exchange is preparing to make a major move by launching its own blockchain in early 2025. The new blockchain, named Ink, will enable users to trade, lend, and borrow tokens without intermediaries, positioning it as a powerful player in the DeFi space.

Kraken has long been a leader in the cryptocurrency exchange space, and with Ink, the exchange is set to expand its dominance even further. The Ink blockchain will allow users to engage in DeFi activities—such as trading, lending, and borrowing—without the need for intermediaries. Unlike centralized finance, Decentralized finance (DeFi) eliminates third-party involvement.

Kraken’s founder, Andrew Koller, announced that the blockchain will be introduced in 2025, with a testnet launching in late 2024 for developers to begin experimenting with decentralized applications (DApps). The initiative is a clear response to the success of other exchange-run blockchains, such as Binance’s BNB Chain and Coinbase’s Base, both of which have proven to be highly profitable and scalable.

Ink will incorporate several advanced features, making it easier for users to interact with decentralized finance. Among the initial offerings are decentralized exchanges (DEXs), yield farming, and other token-based financial tools.

Over a dozen decentralized applications (DApps) are expected to launch on Ink when it goes live. These include real-world asset tokenization and advanced lending applications, which could attract a wide range of investors, from crypto enthusiasts to large institutional players. Kraken also aims to leverage its existing infrastructure, including the Kraken Wallet app, to integrate these DeFi services seamlessly.

Kraken’s decision to develop its own blockchain comes at a time when exchanges are increasingly looking to capitalize on the growing DeFi sector. Coinbase’s Base network, for example, grew by 300% in transaction volume within months of its launch. Kraken’s Ink is expected to offer similar scalability and growth potential, especially given the growing demand for decentralized finance solutions.

What sets Kraken apart from other exchanges is that it does not plan to issue a native token for Ink. Instead, it will focus on transaction sequencing and revenue generation from DeFi services, ensuring users can enjoy low fees and a secure environment. Kraken will act as the initial sequencer for transactions but aims to decentralize the network’s control in the future.

Kraken’s foray into the DeFi sector through the launch of its Ink blockchain signals a broader trend of centralized exchanges (CEXs) integrating decentralized finance solutions. This enhances Kraken’s offerings and points to capitalize on the growing demand for hybrid models that combine the security and familiarity of centralized platforms with the autonomy and innovation of DeFi.

We may see other major key players exchanges follow this path too, and users will get the chance to experience the best of both Centralized and Decentralized worlds.