Kraken Layer 2 Blockchain Coming Soon With Base-Like Technology

Key Points:

• Kraken layer 2 blockchain is being built on Ethereum using technology from Optimism, similar to Coinbase’s Base.
• Kraken aims to simplify DeFi access through the Kraken Wallet app and is expanding its offerings as it considers an IPO.

According to Bloomberg, Kraken announced it was launching a layer 2 network, which it’s calling Ink, on the Ethereum blockchain using technology from Optimism.

Read more: Coinbase Layer 2 Base Introduced New Identity Tool

Kraken Layer 2 Blockchain Will Be Built on Ethereum

Kraken layer 2 blockchain will be built on the OP stack, a modular toolkit that allows developers to create blockchains using Optimism’s tech. According to Andrew Koller, founder of Ink, a testnet for developers to play around with applications on the new network will come later this year, while the network itself is expected to go full live in early next year, targeting both retail and institutional users.

The decision to launch Kraken layer 2 blockchain is part of the recent trend among crypto exchanges to create their own blockchains, a strategy that paid well for Binance, the world’s biggest crypto exchange, and its BNB Chain.

Meanwhile, Coinbase’s Base network, launched more than a year ago, scaled to become one of the biggest DeFi platforms, seeing 300% growth in the number of transactions in the second quarter of 2024, buoyed by app releases and the proliferation of meme coins.

Kraken Widens Access to DeFi While Mulling IPO

While Kraken won’t be issuing its own token, unlike Binance and Coinbase, the firm has plans to make the use of DeFi easier for customers. Koller said Kraken is making the utilization of DeFi exponentially easier on the user side by providing an intuitive and low-cost medium with which users can earn yield and operate other financial functionality via the Kraken Wallet app.

Since its inception in 2011, Kraken has continued to turn out new services. The firm is also considering an IPO, reportedly considering a final funding round in anticipation earlier this year.