Kraken’s Layer 2 Blockchain Set to Launch with Base-Like Tech

Kraken’s New Layer 2 Blockchain Built on Ethereum

Kraken is developing its own Layer 2 blockchain on Ethereum, using Optimism technology, with a vision to simplify decentralized finance (DeFi) access for its users. Named Ink, the blockchain is modeled after similar technology used in Coinbase’s Base network. Kraken’s move is part of a growing trend among major crypto exchanges to launch proprietary networks, enhancing their ecosystems and making DeFi more accessible to a broader audience.

Key Features of Kraken’s Layer 2 Network

• Technology: Built on Ethereum with Optimism technology, utilizing the OP Stack.
• Launch Timeline: A testnet will be available by the end of the year, with a full launch expected early next year.
• User Focus: Designed for both retail and institutional users.

The decision to launch Ink aligns Kraken with other exchanges that are capitalizing on Layer 2 solutions. Binance, for instance, has successfully expanded its ecosystem with the BNB Chain, while Coinbase’s Base has become a prominent DeFi platform, experiencing substantial growth since its launch.

Expanding DeFi Access with Kraken Wallet

Unlike Binance and Coinbase, Kraken will not issue its own native token for Ink. Instead, Kraken is focusing on enhancing DeFi accessibility through the Kraken Wallet app, making DeFi features like yield generation and financial transactions more intuitive and cost-effective for users.

As Kraken founder Andrew Koller noted, Ink aims to make DeFi functions “exponentially easier” for users, providing a seamless experience that enables earning yield and other financial capabilities directly within the Kraken Wallet.

Future Growth and IPO Consideration

Since its founding in 2011, Kraken has steadily expanded its range of services and is now considering an initial public offering (IPO). Reports suggest that Kraken is eyeing a final funding round as it contemplates going public, potentially signaling significant growth ahead.

With the launch of Ink and its commitment to DeFi innovation, Kraken is positioned to capture a larger share of the evolving crypto landscape, providing an accessible Layer 2 platform built on reliable Ethereum and Optimism technology.