The U.S.-based crypto exchange just announced its latest venture: a brand-new blockchain network called Ink.
This Ethereum Layer-2 network is built using Optimism’s OP Stack and is expected to go live for the public by 2025.
Joining the crypto network party
With this move, Kraken is stepping into the ring alongside other exchanges that have launched their own blockchain networks for decentralized applications.
While Binance was one of the pioneers with its BNB Smart Chain, many others like Coinbase and OKX have opted for Layer-2 solutions to boost their offerings.
A test version of Ink will be available for developers later this year, but everyday users, both retail and institutional, will have to wait until the first quarter of 2025 to dive in.
Kraken is touting Ink as a way to boost crypto adoption and make DeFi more accessible to everyone. Being more accessible is like a magic buzzword lately.
“This enables users to effortlessly engage with top-tier DeFi applications, protocols, and communities in a single, integrated ecosystem that they can access wealth-building opportunities on-chain.”
Competing with Coinbase
It seems like Kraken is taking a page out of Coinbase’s playbook with this launch, and given the fierce competition between these two U.S.-based exchanges, who together account for a large chunk of the U.S. crypto market, it’s no surprise that Kraken wants to keep up.
Coinbase is currently ranked second among global crypto exchanges, while Kraken sits at sixth.
Interestingly, Kraken has decided not to issue a native token for Ink. Andrew Koller, the creator of Ink, describes it as an easy-to-use platform that offers an experience similar to Apple products.
He mentioned that users will be able to access various dApps and DEXes through the Kraken Wallet.
“Over time, our users will have these two centralized and decentralized ecosystems playing with each other. We want you to feel that you are doing something familiar.”
Progress is unstoppable
Kraken also plans to take on the role of chain sequencer for Ink but intends to decentralize this function down the line.
This strategy mirrors what Coinbase is doing with its Base network and could potentially generate some revenue for Kraken if Ink takes off.
And it’s pretty likely it will. For context, Coinbase made $53 million from Base in just the second quarter of 2024.
The real winner here might be Optimism Limited, the developer behind the Layer-2 technology. Their OP Stack is being used by several projects looking to launch their own Layer-2 solutions.
