Kraken to launch blockchain network in 2025

Kraken, the cryptocurrency exchange whose founder, Jesse Powell, donated $1 million in crypto to Donald Trump, is preparing to launch its own blockchain network next year. The new project, called Ink, is designed to be a decentralized blockchain similar to Coinbase’s Ethereum layer-2 network, Base, according to Bloomberg.

Scheduled for launch in early 2025, Kraken’s Ink blockchain aims to be the second U.S.-based crypto exchange to roll out a decentralized chain with smart contract capabilities. The blockchain is envisioned as an Ethereum scaling solution (commonly referred to as an L2), and Kraken’s founder, Andrew Koller, highlighted that it will enable both retail and institutional users to engage in trustless financial activities on-chain.

Like Base on Ethereum, Ink is designed to support decentralized applications (dApps), including popular platforms like the DeFi lender Aave and Aerodrome, the largest decentralized exchange (DEX) on Coinbase’s L2 network. Ink will leverage Optimism’s developer stack, the same technology that powers Coinbase’s Base network.

Base has already made a significant impact, becoming the fifth-largest DeFi chain and accumulating over $2.4 billion in total value locked (TVL) since its launch in August 2023. This places it behind only Ethereum, Tron, Solana, and Binance Smart Chain in terms of TVL, showing the rapid growth and adoption of crypto exchange-backed blockchains.

Kraken’s entry into the blockchain space with Ink could signal a bullish outlook on the U.S. crypto landscape, especially post-elections. Kraken’s founder, Powell, has previously shown support for Republican candidate Donald Trump, making a $1 million donation (primarily in Ethereum) in June 2023. Trump’s prospects in the 2024 presidential race have been fluctuating, with his odds of winning increasing on prediction platforms like Kalshi and Polymarket.

Meanwhile, Kraken is also facing legal challenges from the U.S. Securities and Exchange Commission (SEC), which has accused the exchange of operating as an unregistered securities exchange. A judge recently ruled to proceed with the SEC’s lawsuit, and Kraken has denied the allegations, requesting a jury trial.