Kraken is gearing up to introduce its own blockchain, Ink, in early 2025. The new platform will support dApps for trading, borrowing, and lending without the need for intermediaries. 

Ink will be a Layer-2 blockchain powered by Optimism’s OP Stack. This is the same technology that powers Coinbase’s Base, which has grown into one of the leading DeFi platforms since its launch. 

In an interview with Bloomberg, Andrew Koller, the founder of Ink, mentioned that a test version of the network will go live later this year. It will provide exclusive early access to the developers. 

Initially, Kraken will handle the role of the chain’s sequencer, managing transactions and generating revenue through this process. Over time, this responsibility will be decentralized and distributed among multiple participants.

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“I’m sure they’re going to decentralize their sequencer, giving up sub-second block times and MEV revenue, and get to L2 Stage 2 as soon as possible. The unfragmented, harmonized rollup-centric roadmap is coming together exactly as planned!” crypto entrepreneur Matt Henderson wrote in an X post (formerly Twitter). 

Several major crypto exchanges have developed their own blockchains, following the success of Binance, the largest digital-asset exchange. Binance’s BNB Chain and its associated token have gained significant traction globally. 

Coinbase’s entry into the space with Base has also proven effective, with the platform achieving 300% growth in transactions during the second quarter. Unlike its competitors, Kraken has no plans to release a native token, as Koller noted.

Currently, a team of around 40 employees is working on Ink. The exchange is also organizing developer-focused events, including a presence at Devcon in Thailand.

In addition to INK, Kraken has also made several major announcements throughout the week. The platform is also launching a Bitcoin-backed asset called ‘KBTC,’ which can be traded natively on the Ethereum network. 

Regulatory Battle with the SEC continues

On a regulatory front, the exchange is pushing back against the SEC over claims that certain digital assets offered by the exchange qualify as unregistered securities. The SEC accused Kraken of violating federal securities laws, citing assets such as ADA, ALGO, and SOL. 

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Kraken disputes this, stating that these assets do not meet the legal criteria for securities under U.S. law and accusing the SEC of overreaching with unclear guidelines.

The exchange has requested a jury trial, alleging that the SEC has consistently blocked its attempts to register or cooperate by issuing contradictory rulings and guidance. Kraken also recently delisted Monero (XMR) from its European market over regulatory changes.