Kraken to launch a new blockchain to run DeFi crypto exchange

On Oct 24, 2024

Kraken exchange is planning to launch a new blockchain network, similar to how Coinbase launched its Base blockchain.

Kraken is a popular digital assets trading platform, founded in 2011. This US-based crypto firm offers a wide range of cryptocurrencies for trading, including Bitcoin, Ethereum, and many altcoins. Known for its robust security measures and comprehensive trading features, Kraken serves both individual and institutional investors.

On 24 Oct 2024, Kraken announced its new blockchain network called Ink.

Introducing Ink.

A single, integrated DeFi ecosystem here to make onchain easier.

Join us: https://t.co/kKPhCeRLFf pic.twitter.com/tH4nqENKZ7
— ink (@inkonchain) October 24, 2024

According to the announcement, Kraken will launch Ink in 2025. In its initial phase, a dozen DeFi crypto protocols will be introduced to provide trading services. With this new project, Kraken aims to offer crypto trading without any middleman or permission under a decentralised medium, while maintaining a user-friendly interface so that people can trade cryptocurrencies with more ease.

Media reports claim that Kraken seems poised to compete against Coinbase’s Base blockchain network. Like Base, Kraken will not launch any native token on the new blockchain.

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Kraken plans to launch a blockchain early next year for decentralized applications that allow for trading, borrowing and lending of tokens without intermediaries. Called Ink, the new digital ledger will use similar technology to Coinbase Global Inc.’s Base.…
— Wu Blockchain (@WuBlockchain) October 24, 2024

DeFi & challenges

While DeFi has been around for several years, it can be complex for newcomers. Kraken wants to address this issue with Ink. At launch, the platform is expected to feature over a dozen apps, including decentralised exchanges and aggregators, with plans to expand into real-world assets and advanced lending apps.

It will be interesting to see the regulatory challenges these types of new developments face, as KYC measures are an important requirement, while DeFi protocols typically do not require any KYC details.

Now it will be interesting to see how the future of crypto finance will change with Defi protocols adoption, as security of the funds has been a very big question in the crypto space.