In a shocking turn of events, crypto exchange Kraken is planning to launch its own Blockchain. According to a report by Bloomberg, early in the upcoming year, Kraken, one of the oldest cryptocurrency exchanges in the world, intends to introduce a blockchain for decentralized applications that enables transparent trading, borrowing, and lending of tokens.
Bloomberg further highlights that the new blockchain will be known as Ink. The new digital ledger will employ technology that is comparable to Base from Coinbase Global Inc. More than a year after its launch, Base has grown to become one of the biggest DeFi platforms.
Later this year, a so-called testnet will be launched by Kraken where developers may test Ink apps. The Ink blockchain should be accessible to institutional and retail consumers in the first quarter of 2025.
Kraken’s New Blockchain Comes As Crypto Exchange Sees Higher User Traffic
Over the past several years, the Bitcoin market has grown rapidly. The launch of Bitcoin into the market has drawn some eyebrows towards the value of digital assets. However, this quickly changed after people realized the importance of decentralized currencies.
Many were drawn to follow the trend as a result. These days, more consumers and companies want to buy Bitcoin. The green signal from the US SEC for the trading of Bitcoin and Ethereum ETFs made even the retail investors place bets on cryptocurrencies.
Given the rising demand, cryptocurrency exchanges like Kraken are rejoicing with heavy traffic and trading volumes. According to the BitDegree Exchange Tracker, Kraken is ranked third in the overall crypto exchange sphere. The average weekly trading volume on the cryptocurrency exchange is $138.2 billion.
Why Are Crypto Exchanges Introducing Their Own Blockchain?
The benefits of having a native blockchain have time and again proven to be important for crypto exchanges. Bloomberg further highlights that after witnessing how blockchains boosted revenue and user growth at Binance, the largest digital asset exchange in the world, cryptocurrency exchanges have been introducing their own blockchains.
The BNB Chain and associated cryptocurrency from Binance have grown to be some of the most well-known in the world. Coinbase’s entry into the market has also been effective; in the second quarter, the company’s transaction volume increased by 300% sequentially, primarily due to the introduction of apps and memecoins.
Since a native blockchain stores data and transactions similarly across different places due to its distributed ledger technology, it provides a transparent trading experience for users.