Kraken, one of the leading centralized cryptocurrency exchanges (CEX), is gearing up to introduce its own blockchain, named “Ink,” in early 2025. This new blockchain will be geared toward decentralized finance (DeFi) applications, marking a strategic shift for Kraken toward decentralized services.
According to Bloomberg, Ink will enable users to engage in token trading, borrowing, and lending without intermediaries, positioning itself as a decentralized alternative to Kraken’s CEX offerings. Release the…Ink: Kraken’s new blockchain aims to simplify DeFi for a broader audience, making the process more accessible and cost-effective.
This move follows in the footsteps of other major exchanges like Binance with its BNB Smart Chain and Coinbase’s Base blockchain. While Kraken doesn’t plan to issue a native token for Ink, it will integrate DeFi tools such as decentralized exchanges (DEXs) and yield-generating platforms directly into the Kraken Wallet app.
Ink’s founder, Andrew Koller, explained in an interview with Bloomberg that the new blockchain will offer users the flexibility to transition between centralized and decentralized services over time. Developers will have access to a testnet in late 2024 to build and experiment with decentralized applications (DApps) before the full launch of Ink.
User experience and revenue generation: Kraken aims to capture the growing demand for DeFi services by initially serving as Ink’s sequencer, earning revenue from managing network transactions. This revenue model mirrors the successful approaches of Coinbase and Binance, with Coinbase alone earning $53 million from sequencer revenue in just one quarter. Ink will also debut with more than a dozen DApps, aiming to bring real-world assets and lending platforms to the blockchain ecosystem.
Kraken product offerings expansion: Earlier this year, on Oct. 3, Kraken launched a new derivatives trading platform in Bermuda, following its acquisition of a Class F Digital Business License from the Bermuda Monetary Authority (BMA) in July. This license allows Kraken to provide digital asset wallet services, offer digital asset lending and repurchase services, and operate as a digital asset derivatives exchange. The platform’s initial offerings include perpetual and fixed-maturity futures contracts, setting the stage for growth in both trading volume and open interest.
Kraken’s launch of Ink highlights its ambition to broaden its DeFi presence while continuing to expand its product suite across the digital asset landscape.
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