On July 24, 2025, major cryptocurrency exchange Kraken officially announced the integration of the Ink L2 protocol and its native INK token into its core trading platform, along with plans to conduct an airdrop of INK tokens to eligible users through the exchange's “Drops” program. The announcement, made in collaboration with the Ink Foundation, marks a significant strategic push into layer two solutions by one of the oldest crypto exchanges.
Key Integration Details and Airdrop Mechanics
According to the press release shared with Bitcoin.com News, Kraken will incorporate technology built by the Ink Foundation, including the Ink L2 chain and the INK token issued by a subsidiary of the Foundation. Kraken co-CEO Arjun Sethi stated that the objective is to embed “production grade onchain systems” across the exchange's offerings. He described Ink L2 as a high-throughput, low-finality environment that is fully compatible with the Ethereum Virtual Machine (EVM), making it suitable for trading and payments infrastructure. The airdrop will be executed via Kraken's existing “Drops” program, but specific eligibility criteria and distribution schedules were not disclosed at this time. The exchange indicated that more information would be shared as each milestone is achieved.
Bridging CeFi and DeFi
The Ink Foundation Board hailed the partnership as a “pivotal moment” that helps bridge the gap between centralized finance (CeFi) and decentralized finance (DeFi). They described the integration as a step toward creating unified capital markets accessible to anyone. This aligns with Kraken's broader vision of making crypto more mainstream while retaining security and regulatory compliance. By offering a built-in L2 environment, Kraken aims to provide users with lower fees and faster transactions without leaving the exchange ecosystem.
Competitive Landscape: Chasing Coinbase's Base
Kraken's move comes as other major exchanges have already established a strong presence in the L2 space. Notably, Coinbase's Base — launched in 2023 — has rapidly grown into one of the most active L2 ecosystems, hosting numerous DeFi protocols and attracting a large user base. Ink enters the scene with a clear challenge: differentiate itself through technology (low latency, high throughput) and leverage Kraken's loyal customer base. However, Base's first-mover advantage and deep integration with Coinbase's user network present significant headwinds. The success of INK will likely depend on the attractiveness of the airdrop, developer incentives, and the speed at which applications are built on the new L2.
With the L2 race heating up, Kraken's integration of Ink is not just about technology — it's a strategic bet on user acquisition and retention. As the crypto industry moves toward multichain interoperability, exchanges that control their own layer two infrastructure may gain a competitive edge. Kraken's decision to partner with an external foundation rather than building in-house (like Coinbase did with Base) could allow for more flexibility, but also introduces dependencies. The next few months will be critical as Kraken rolls out the integration details and begins the airdrop distribution.