Kraken to Launch Ethereum Layer 2 Blockchain: Ink

Kraken is planning to launch its own Ethereum Layer 2 blockchain called Ink early next year in partnership with Zora, following the lead of rival crypto exchange Coinbase.

Timeline

Confirming initial reports from November 2023, Ink is expected to debut its testnet later this year, with the full mainnet launch anticipated in the first quarter of 2025. It aims to provide permissionless access to DeFi applications, including trading, lending, and borrowing services, as stated on Thursday.

Superchain Integration

Ink will join the Ethereum ecosystem as part of the Superchain—a network of interoperable Layer 2 blockchains built using Optimism's OP Stack. This stack allows seamless communication and scalability across networks. Projects such as OP Mainnet, Base, Zora, and Worldcoin have already launched Layer 2s on the Superchain.

Optimism Unlimited Chief Growth Officer Ryan Wyatt expressed excitement for Ink's addition to Optimism, noting that nearly 50% of all Ethereum L2 transactions are powered by Optimism technology. As part of this ecosystem, Ink will also contribute to Optimism governance and revenue for the Optimism Collective.

Token Plans

However, unlike its Superchain counterparts, Kraken has no plans to issue an Ink token, according to founder Andrew Koller. Kraken will initially act as the sole sequencer for Ink, managing transactions and earning revenue, with plans to decentralize this process over time.

At launch, Base's sole sequencer was Coinbase, which has become the largest Ethereum scaling layer by total value locked.

Future Developments

Over a dozen decentralized applications, including exchanges and aggregators, will be available at Ink's launch. Future expansion may include real-world assets and advanced lending features.

Kraken hopes to replicate the success of Coinbase’s Base, which recently became the largest Ethereum Layer 2, surpassing Arbitrum with $2.5 billion in deposits, just over a year after its launch in August 2023.

Despite regulatory challenges with the SEC, Kraken continues to explore new markets and products, including a wrapped bitcoin alternative called kBTC on Ethereum and OP Mainnet, as well as a potential IPO.