Kraken Launches Ethereum Layer-2 Network Ink for DeFi Expansion

By: Eva Baxter

In an ambitious move set to reshape its business model, Kraken, a prominent cryptocurrency exchange, announced the development of Ink, an Ethereum layer-2 network. This network is part of Kraken's strategy to shift from a centralized exchange to a decentralized finance (DeFi) ecosystem. Ink will enable users to trade, borrow, and lend tokens without intermediaries, providing a seamless experience for crypto enthusiasts.

Ink is constructed using the Optimism Superchain's OP Stack, a cutting-edge technology that enhances Ethereum's scalability while maintaining its security integrity. This decision aligns Kraken with other major crypto players like Coinbase and Uniswap that are leveraging the same technology to power their layer-2 solutions. The anticipated launch of Ink's testnet for developers is slated for later this year, with a complete rollout expected by the first quarter of 2025.

An interesting aspect of Kraken's new venture is its commitment to building a unified blockchain ecosystem. By integrating with the Optimism Superchain, Ink will contribute to the ecosystem's governance and help generate revenue for the Optimism Collective. This strategic alignment ensures that Ink not only taps into Ethereum's existing strengths but also enhances collaboration across decentralized networks.

The launch of ink complements Kraken's burgeoning product portfolio which includes other new offerings like kBTC, a wrapped Bitcoin product aimed at increasing its availability for DeFi activities. Furthermore, Kraken is expanding its scope by allowing users to restake their ETH on the platform through EigenLayer and launching a derivatives trading platform in Bermuda. With these developments, Kraken is cementing itself as a versatile player in the evolving crypto landscape.