Kraken to Launch Ink Blockchain in 2025, Targeting DeFi with No Native Token

• Kraken’s Ink blockchain will debut in 2025, offering decentralized finance services integrated within the Kraken Wallet.
• Ink will not issue a native token, but it will focus on DeFi tools, DEXs, and yield-generating platforms for users.
• Ink’s testnet will launch in late 2024, giving developers early access to experiment with decentralized applications before the full release.

Kraken, a major centralized cryptocurrency exchange (CEX), is set to launch its own blockchain named “Ink” in early 2025, aimed at expanding into decentralized finance (DeFi). The new platform will allow users to trade, borrow, and lend tokens without intermediaries, making it a departure from Kraken’s traditional centralized model. According to a Bloomberg report, the introduction of Ink reflects Kraken’s intention to simplify and make DeFi more accessible and cost-effective for users.

Focus on DeFi and Decentralized Applications (DApps)

Ink will be integrated with the Kraken Wallet, allowing users to access decentralized exchanges (DEXs) and yield-generating platforms directly. Notably, Kraken does not plan to issue a native token for Ink. Instead, the blockchain will focus on DeFi tools and support over a dozen decentralized applications (DApps) at launch. These apps aim to advance lending platforms and potentially host real-world assets in the future.

Ink’s testnet, slated to launch later in 2024, will give developers the opportunity to experiment with decentralized applications before the full release. Kraken’s founder of Ink, Andrew Koller, emphasized that this move will enable users to transition smoothly between centralized and decentralized services.

Kraken’s Sequencing Model

Initially, Kraken will act as Ink’s sequencer, managing and organizing network transactions. The model will generate revenue in a manner similar to Coinbase and Binance’s blockchain operations. Kraken’s approach mirrors Coinbase’s Base, which generated $53 million in sequencer revenue in Q2 2024. Over time, Kraken plans to decentralize this function, allowing more participants to get involved.

The demand for DeFi services has been steadily growing, and Kraken aims to capitalize on this by offering a platform that simplifies decentralized transactions. Ink’s interface, described by Koller as “Apple-esque,” is designed to streamline the user experience, making DeFi services more approachable for both retail and institutional users.

Developer Opportunities and Future Plans

Kraken’s decision to launch Ink comes after the success of similar blockchain projects by competitors like Binance and Coinbase. The testnet for developers will allow early experimentation with decentralized applications before the public launch in 2025. By making DeFi tools simpler and more intuitive, Kraken aims to broaden its reach and offer decentralized services to a wider audience.

Upon launch, Ink will support a range of decentralized applications while continuing to improve its offerings. With the potential for advanced lending platforms and real-world asset integrations, Kraken’s Ink blockchain could reshape its role in the decentralized financial ecosystem.