Kraken is set to launch its own blockchain, called Ink, in early 2025. This new platform will allow for decentralized applications, or dApps, focused on trading, borrowing, and lending without any middlemen involved.

Ink will be a Layer-2 blockchain that uses Optimism’s OP Stack technology. This is the same tech that powers Coinbase’s Base, which has become a top player in the DeFi space since it started.

In a recent interview with Bloomberg, Andrew Koller, the founder of Ink, shared that a test version of the network will go live later this year. This will give developers exclusive early access to explore its features.

At first, Kraken will act as the sequencer for the blockchain. This means they’ll manage transactions and generate revenue from that role. Over time, this responsibility will shift to multiple participants, making it more decentralized.

Crypto entrepreneur Matt Henderson expressed confidence that Kraken will decentralize its sequencer soon. He believes they’ll achieve sub-second block times and distribute miner extractable value (MEV) revenue as they move to the next stage.

Many major crypto exchanges have created their own blockchains, inspired by Binance’s success. The BNB Chain and its token have gained a lot of traction worldwide.

Coinbase’s Base has also done well, seeing a 300% increase in transactions during the second quarter. Unlike its competitors, though, Kraken doesn’t plan to release a native token, as Koller has indicated.

Currently, about 40 employees are working on Ink. The exchange is also hosting events for developers, including participation at Devcon in Thailand.

Alongside Ink, Kraken recently announced a new Bitcoin-backed asset called ‘KBTC.’ This asset will be tradable directly on the Ethereum network.

On the regulatory front, Kraken is pushing back against the SEC. They’re challenging claims that certain digital assets they offer are unregistered securities. The SEC has accused Kraken of violating federal securities laws, citing assets like ADA, ALGO, and SOL.

Kraken disagrees. They argue these assets don’t meet the legal definition of securities in the U.S. and claim the SEC is overstepping its bounds with vague guidelines.

The exchange has asked for a jury trial. They allege the SEC has consistently blocked their attempts to register or cooperate by issuing conflicting rulings and guidance. Recently, Kraken also delisted Monero (XMR) from its European market due to regulatory changes.