Kraken is set to introduce its own blockchain, named “Ink,” in early 2025, with a primary focus on decentralized finance (DeFi) applications. This initiative aims to facilitate access to trading, lending, and borrowing services without the need for intermediaries, marking a significant shift from Kraken’s current centralized exchange model.
As reported by Bloomberg, Ink is designed to empower users to engage in token transactions independently, thereby moving away from the traditional centralized exchange framework prevalent in the cryptocurrency and Web3 sectors. The forthcoming blockchain is expected to streamline the DeFi experience, making it more accessible and cost-effective for a wider audience.
Kraken’s decision to develop a blockchain follows the successful implementations seen with other platforms, such as Binance’s BNB Smart Chain and Coinbase’s Base blockchain. While Kraken does not intend to launch a native token for Ink, it plans to incorporate various DeFi tools, including decentralized exchanges (DEXs) and yield-generating platforms, into the Kraken Wallet application.
Andrew Koller, the founder of Ink, indicated in a Bloomberg interview that this initiative would gradually enable users to transition between centralized and decentralized services. A developer testnet for Ink is scheduled to be released in late 2024, allowing developers to explore decentralized applications (DApps) prior to the full launch of the blockchain.
In terms of user experience and revenue generation, Kraken’s strategy for Ink aims to capitalize on the growing demand for DeFi services. Initially, Kraken will serve as Ink’s sequencer, generating revenue through the management and organization of network transactions. This approach mirrors the successful models employed by Coinbase and Binance, with Coinbase reportedly earning $53 million in sequencer revenue in the second quarter.
To enhance user experience, Ink plans to debut with a variety of DApps, with future aspirations to incorporate real-world assets and advance lending platforms.
On October 3, Kraken launched a derivatives trading platform in Bermuda, following the acquisition of a Class F Digital Business License from the Bermuda Monetary Authority (BMA) on July 30.
This license permits Kraken to offer wallet services, function as a provider of digital asset lending or repurchase transactions, and operate as a digital asset derivatives exchange.
The platform’s inaugural offerings included perpetual and fixed-maturity futures, with expectations of increased derivative volumes and open interest in the future.