Bermuda

Wrapped Bitcoin

DeFi

Kraken, a centralized cryptocurrency exchange (CEX), plans to launch its own blockchain dubbed “Ink” in early 2025, focusing on decentralized finance (DeFi) applications.
According to a Bloomberg <a data-ct-non-breakable="null" href="https://www.bloomberg.com/news/articles/2024-10-24/crypto-exchange-kraken-plans-to-launch-its-own-blockchain-early-next-year" rel="noopener noreferrer nofollow" target="_blank" text="null" title="null">report</a>, Ink aims to enable users to trade, borrow and lend tokens without intermediaries — taking a step away from the CEX’s current position in crypto and Web3.
The anticipated launch of Kraken’s blockchain aims to simplify the DeFi process for a broader audience and make it accessible and cost-effective for users.
<figure>
 <img alt="Kraken, Wallet, Decentralization, Cryptocurrency Exchange, Derivatives" src="https://s3.cointelegraph.com/uploads/2024-10/0192bec1-2e58-7d6d-89bd-3067aee198fd" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/krakenfx/status/1849089999607582941" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://x.com/krakenfx/status/1849089999607582941">Kraken Exchange</a>
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-investors-like-dollar-cost-averaging-kraken-survey" rel="null" target="null" text="null" title="null">Crypto punters favor dollar-cost averaging when investing: Kraken survey</a>
<h2 id="release-the-ink">Release the…Ink</h2>
Kraken’s decision to build a blockchain follows the success of similar initiatives such as Binance’s BNB Smart Chain and Coinbase’s Base blockchain.
Although Kraken does not have plans to issue a native token for Ink, it does plan to integrate DeFi tools like decentralized exchanges (DEXs) and yield-generating platforms within the Kraken Wallet app.
Andrew Koller, the founder of Ink, told Bloomberg in an interview that this move would, over time, allow users to shift between centralized and decentralized services.
Ink is set to offer a developer testnet later in 2024 and allow developers to experiment with decentralized applications (DApps) ahead of the blockchain’s full launch.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/kraken-launches-kbtc-wrapped-btc" rel="null" target="null" text="null" title="null">Kraken crypto exchange launches own Wrapped Bitcoin token</a>
<h2 id="user-experience-and-revenue-generation">User experience and revenue generation</h2>
Kraken’s positioning of Ink is also set to tap into the increasing demand for DeFi services, initially acting as Ink’s sequencer and earning revenue from managing and organizing network transactions.
According to Bloomberg, this model works similarly to Coinbase and Binance and is shown to be profitable in light of Coinbase generating $53 million in sequencer revenue in the second quarter.
To improve user experience, Ink will launch with over a dozen DApps amid expectations of offering real-world assets and advancing lending platforms in the future.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/satoshi-era-bitcoin-whale-moves-over-5-million-2-months" rel="null" target="null" text="null" title="null">Early Bitcoin-era whale moves $630K to Kraken, $5.5M in 2 months</a>
<h2 id="kraken-product-offerings-expansion">Kraken product offerings expansion</h2>
On Oct. 3, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/kraken-derivatives-trading-platform-bermuda-bma-license" rel="null" target="null" text="null" title="null">Kraken opened a derivatives trading platform</a> in Bermuda after receiving a Class F Digital Business License on July 30 from the Bermuda Monetary Authority (BMA).
The license allows Kraken to provide wallet services, operate as a digital asset lending or digital asset repurchase transactions service provider, and operate as a digital asset derivative exchange provider.
The exchange’s initial offering on the new derivatives platform was perpetual and fixed-maturity futures, anticipating growth in derivative volumes and open interest ahead.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/solana-champion-mert-mumtaz-fud-sol-most-helius/" rel="null" target="null" text="null" title="null">The rise of Mert Mumtaz: ‘I probably FUD Solana the most out of anybody’</a>

Kraken to launch Ink blockchain for DeFi in early 2025

Table of Contents

Cointelegraph

Other articles published on Oct 24, 2024

Bitcoin Price Prediction: Bearish Reversal And $60k Retest on Cards

2024 Presidential Election Predictions: Ripple CEO Slams Biden’s Crypto Policies, Pushes for Clarity

Tron Network Energy Doubles, Boosting Capacity for Meme Coins

Bitcoin Surges Above $69,000 as Majority of Holders Profit

XRP News : Why CEO Of Ripple Was De-Banked?

Solana Breaking Out-Bulls Gearing Up For A Massive Run, Here’s When You Can Expect a New ATH

Join our free newsletter for daily crypto updates!