Tether has chosen Kraken’s native Ethereum scaling solution, Ink, for the initial launch of its USDT0 token, as announced on Thursday.

USDT0 aims to create a cross-chain “unified liquidity layer,” simplifying the process of transferring USDT across the broader crypto ecosystem. It utilizes LayerZero’s Omnichain Fungible Token standard, which is designed to facilitate token minting and burning across various blockchains.

Tether remains the most widely used and liquid stablecoin in the market. Since Paolo Ardoino took over as CEO in late 2023, the company has embarked on various experimental projects, such as launching Bitcoin mining operations in El Salvador and forming an internal AI research team.

The new USDT0 token is part of Tether’s growth strategy and could serve to expand the liquidity and usability of Tether across multiple platforms.

Kraken, founded in 2011, has also been focusing on growth and innovation, embracing a “startup mode.” In October, the company announced company-wide layoffs aimed at removing unnecessary organizational layers to concentrate on product development and innovation. This shift in strategy is especially visible in Kraken’s Ink, an Optimism-based Layer 2 network that launched ahead of schedule in December. Despite being only a few weeks old, Ink has already seen several milestones, including joining the Optimism Security Council, launching a version of the Velodrome decentralized exchange, and being selected as the test platform for Tether’s new token.

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“We’re launching things quickly and experimenting a lot,” said Andrew Koller, a six-year Kraken veteran who led Ink’s development, speaking to The Block. He also highlighted the similarities between Kraken’s and Tether’s approach to innovation.

Koller explained that Tether is highly “security-focused” and usually waits months to ensure a blockchain meets their stability and security criteria before launching. However, due to Kraken’s strong reputation and the proven technology behind the OP Stack, the two companies decided to fast-track the deployment.

“Paulo and I got really creative about how to bring Tether to Ink,” Koller remarked, noting that no money was exchanged in the process.

“We have a solid reputation for security, and we integrate security experts at every level,” Koller added. “So when we’re testing the sequencer or stress testing, we do it together.”

In addition to enhancing liquidity for projects like Velodrome, Koller emphasized that USDT0 is expected to improve the user experience on Ink and other Layer 2 networks.

A number of prominent cryptocurrency firms, including Ripple, Kraken, and Circle, are eagerly vying for positions on the anticipated crypto advisory council to be formed by President-elect Donald Trump. These companies, along with other industry insiders, are seeking to influence the upcoming changes to U.S. cryptocurrency regulations.

According to Reuters, this development follows Trump’s announcement at a Bitcoin conference in Nashville back in July, where he shared plans to establish a new advisory council focused on supporting a crypto-friendly agenda under his administration. The transition team is currently working on the council’s structure, staffing, and the selection of companies to be included. The announcement has generated significant interest from key players in the digital asset industry.

Leading U.S. Crypto Firms Eye Council Seats

Several major cryptocurrency companies in the U.S. are keen to secure a place on the council. Venture firm Paradigm is among those eager to be included, while Andreessen Horowitz’s crypto division, a16z, is also expected to have a seat. David Bailey, CEO of Bitcoin Magazine, commented, “It’s being fleshed out, but I anticipate that leading executives from America’s Bitcoin and crypto firms will be represented… People are eager to advise and give input.”

Though Kraken and a16z have declined to comment on their involvement, Coinbase CEO Brian Armstrong recently met with Trump, confirming a report from the Wall Street Journal. While the exact details of their conversation remain unclear, the meeting signals Coinbase’s interest in joining the council. Additionally, Jeremy Allaire, CEO of Circle, expressed his enthusiasm about being part of the council during an interview with The New York Times.

Council Structure and Purpose

The proposed advisory council will likely be aligned with the White House’s National Economic Council, which coordinates the President’s economic policies. Alternatively, it may operate within a different White House structure. The primary role of the council will be to provide guidance on digital asset policy, collaborate with Congress on crypto-related legislation, and oversee the development of Trump’s promised Bitcoin reserve.

Executives involved in the discussions have stated that the council will work closely with agencies such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Treasury Department. The council will aim to provide a thorough approach to crypto regulation, ensuring that the U.S. is positioned strategically in the evolving digital asset space.

Exploring the Role of a Crypto “Tsar”

Alongside the advisory council, Trump’s transition team is also considering the creation of a crypto “tsar” position. This individual would lead the council and offer expert guidance on cryptocurrency policy. Bloomberg reported that the transition team is currently evaluating potential candidates for this role. Notable figures who have advised on crypto policy include former CFTC Chair Heath Tarbert, Circle’s chief legal officer, and Brian Quintenz, former Republican CFTC commissioner and current head of policy at a16z crypto.

Trump has garnered support from the crypto industry by presenting himself as a “crypto president,” aiming to prevent regulatory actions under President Joe Biden that target crypto companies accused of violating securities and anti-money laundering laws. Leaders within the crypto sector are advocating for executive orders that guarantee access to banking for crypto firms, halt enforcement actions, and implement reforms that favor the industry.

Industry Concerns About Regulatory Influence

Despite the enthusiasm from crypto firms, not everyone is supportive of the crypto industry having a direct role in shaping its own regulations. Some consumer advocacy groups have voiced concerns about the influence the crypto sector could have on its regulatory framework. Additionally, ethical concerns could potentially delay the appointment of personnel to the council. Nevertheless, experts argue that involving industry leaders in policy decisions is a sensible approach.

Nathan McCauley, CEO of Anchorage Digital, explained, “It’s absolutely the wise choice to put together a council of people who understand how both the industry ought to be regulated and how to position the industry as a strategic asset.”

A Historic Move for the Cryptocurrency Sector

If the crypto advisory council comes to fruition, it would mark the first time a presidential advisory council is dedicated specifically to the cryptocurrency sector, a relatively new industry that has only existed since Bitcoin’s creation in 2009. In comparison, President Biden established multiple councils in his first month in office, including one focused on Science and Technology.

Kristin Smith, CEO of the Blockchain Association, emphasized that setting up the crypto advisory council could be something Trump could implement swiftly, signaling the administration’s commitment to incorporating cryptocurrency into its economic policy.

As the debate over the role of cryptocurrency in the U.S. economy continues, the formation of this council will likely play a pivotal role in shaping the regulatory landscape for digital assets in the coming years.

On November 4, a group of financial technology and cryptocurrency companies, including Robinhood, Kraken, and Galaxy Digital, unveiled a new stablecoin that is pegged to the U.S. dollar. This initiative, called the Global Dollar Network, aims to expand the use of stablecoins globally and foster an asset that offers significant economic benefits to its partners, according to the companies involved.

Why It’s Significant

Stablecoins are digital currencies designed to maintain a consistent value, typically backed by traditional fiat currencies like the U.S. dollar or the euro. With the recent surge in the value of cryptocurrencies such as Bitcoin, driven by expectations of lower U.S. interest rates and the introduction of new crypto exchange-traded products, more firms are now turning their attention to stablecoins. These digital assets are particularly useful for converting cryptocurrencies into fiat currencies, as they are less volatile compared to other digital assets, offering a safer alternative amidst the high price fluctuations seen in other cryptos.

The Global Dollar Network and USDG

The newly created Global Dollar Network will be centered around a stablecoin called USDG, which will be issued from Singapore through the cryptocurrency platform Paxos. The stablecoin will be managed by a committee of representatives from various partners within the network, including Anchorage Digital, Bullish, and Nuvei.

Despite the optimism surrounding USDG, it will face stiff competition in an already consolidated market. Currently, Tether and USD Coin dominate the stablecoin space, accounting for nearly 90% of the total market capitalization, according to data from CoinGecko. As such, USDG will need to work hard to gain traction among traders and investors in an already competitive market.

This new stablecoin initiative is expected to bring greater liquidity and stability to the market, while also fostering increased adoption of stablecoins as a mainstream financial tool.

Kraken, the seventh-largest cryptocurrency exchange, announced that its Layer-2 rollup network, built atop the Ethereum blockchain, has officially launched.

The new network, named Ink, is developed using the OP Stack, a customizable framework that allows developers to create their own rollups with Optimism’s technology. Originally scheduled for launch in early 2025, the main network of Ink has launched ahead of expectations. As part of the deal to develop on the OP Stack, Kraken has received 25 million OP tokens (roughly valued at $58 million). Optimism has acknowledged that providing developer grants to participants building on the OP Stack is a key strategy that contributes to the broader “Superchain” ecosystem.

In a move similar to Kraken, Kraken’s rival Coinbase revealed in August 2023 that it would create a Layer-2 network using the OP Stack. The product, called Base, has already become the second-largest rollup network, according to L2beat. At the time of Base’s announcement, Optimism stated that the Base team would receive up to 118 million OP tokens and, in return, would contribute the higher of 2.5% of its sequencer revenue or 15% of its profits to the Optimism Collective.

Other projects building Layer-2 solutions with the OP Stack — including Uniswap, World Network, and Sony Blockchain Labs — have not disclosed the amount of OP tokens they will receive as part of their respective agreements.

“Today marks the beginning of Ink’s journey, and now our most exciting work begins—growing Ink,” said Andrew Koller, the founder of Ink, in a press release. “We are pushing the limits of on-chain experiences to create new opportunities and applications for both builders and users, with a focus on privacy, security, and UX enhancements, all built on a foundation of deep liquidity.”

In the fast-evolving world of cryptocurrency, choosing the right exchange is crucial for anyone looking to invest or trade digital assets. Kraken, founded in 2011, is one of the most well-established and respected cryptocurrency exchanges globally. Known for its robust security features, a wide range of available assets, and competitive fees, Kraken has become a go-to platform for both beginner and experienced traders alike. In this blog post, we will provide a comprehensive review of the Kraken market, highlighting its features, security, fees, and overall user experience.

Overview of Kraken Exchange

Kraken is a US-based cryptocurrency exchange headquartered in San Francisco, California. It is known for its commitment to providing secure and efficient trading services to users across the globe. Kraken supports a vast array of cryptocurrencies, including popular assets like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), as well as a variety of altcoins and fiat currencies.

Kraken has earned a reputation for its reliability and strong customer support, making it a trusted name in the crypto exchange world. The platform provides advanced trading tools, margin trading, futures contracts, and a host of other features designed to cater to both beginners and seasoned traders.

Kraken’s Market Features

Kraken offers a variety of features that set it apart from other cryptocurrency exchanges:

1. Wide Selection of Cryptocurrencies
   Kraken supports more than 50 cryptocurrencies, including major ones like Bitcoin, Ethereum, and Bitcoin Cash, as well as numerous altcoins. This extensive selection allows traders to diversify their portfolios and explore various digital assets, from the well-known to emerging tokens.
2. Advanced Trading Tools
   Kraken provides traders with a comprehensive set of tools and features designed for both new and experienced users. The platform includes options for spot trading, margin trading, and futures trading, allowing users to employ different strategies. The interface is user-friendly, but also provides advanced charting tools and order types for more sophisticated traders.
3. Staking Services
   Kraken also offers staking, which allows users to earn rewards for holding specific cryptocurrencies on the platform. By staking certain assets, such as Ethereum 2.0 or Polkadot, users can earn passive income, making Kraken an attractive choice for long-term investors.
4. Futures and Margin Trading
   For those interested in higher-risk strategies, Kraken offers futures and margin trading. These options allow traders to amplify their positions, but they also come with increased risk. Kraken ensures that these services are available to both retail and institutional investors.
5. User-Friendly Mobile App
   Kraken’s mobile app is highly rated for its functionality and ease of use. The app provides a full range of features, from simple buy and sell orders to advanced trading and portfolio management tools, making it ideal for traders who want to stay on top of the market while on the go.

Security Features of Kraken

Security is one of Kraken’s strongest selling points. In the world of cryptocurrency, where hacking incidents are not uncommon, Kraken has consistently prioritized user security. Some of the key security features of Kraken include:

1. Two-Factor Authentication (2FA)
   Kraken employs two-factor authentication, a crucial step in protecting users’ accounts from unauthorized access. Users are required to enter a code sent to their mobile device or email whenever they log in or perform certain actions, adding an extra layer of security.
2. Cold Storage for Crypto Assets
   The majority of Kraken’s assets are stored in cold wallets, which are offline and protected from potential hacking attempts. This practice significantly reduces the risk of digital asset theft, as it makes it much harder for attackers to access the funds.
3. Insurance Fund for Fiat Deposits
   Kraken has implemented an insurance policy for fiat deposits held on the platform. This means that in the unlikely event of a security breach, users’ fiat currencies may be protected, offering peace of mind for those holding traditional money on the platform.
4. Regular Security Audits
   Kraken is known for conducting regular security audits to ensure that its systems remain robust and free from vulnerabilities. These proactive measures help maintain the trust of its users and reinforce Kraken’s commitment to safeguarding user funds.

Fees on Kraken

Kraken is known for its transparent and competitive fee structure. The platform operates on a maker-taker model, meaning fees are lower for market makers (those who provide liquidity to the market) and higher for market takers (those who take liquidity from the market). Below is a breakdown of the fee structure:

1. Spot Trading Fees
   For spot trading, Kraken’s fees start at 0.26% for takers and 0.16% for makers, with lower fees available as users’ 30-day trading volume increases. These fees are relatively competitive when compared to other major exchanges.
2. Futures Trading Fees
   Kraken’s futures trading fees are also competitive, starting at 0.02% for makers and 0.05% for takers. As with spot trading, volume-based discounts are available for high-volume traders.
3. Deposit and Withdrawal Fees
   Kraken charges no fees for crypto deposits, but users should be aware of blockchain network fees for transactions. Fiat deposits and withdrawals may incur small fees depending on the payment method and currency used.
4. Staking Fees
   Kraken charges a fee of around 15% for staking rewards, which is in line with industry standards for similar services.

Overall, Kraken’s fee structure is transparent and reasonable, offering competitive rates for both retail and professional traders.

User Experience and Customer Support

Kraken has a reputation for offering strong customer support. The platform provides various methods for users to contact support, including live chat, email, and a comprehensive help center with articles addressing common issues.

The user interface is well-designed and intuitive, making it easy for both beginners and experienced traders to navigate the platform. Kraken also offers educational resources, such as blogs, webinars, and guides, to help users improve their understanding of cryptocurrency trading.

While Kraken is known for its excellent features and security, some users have noted that the platform can experience slower customer support response times during periods of high traffic. However, Kraken consistently works to improve its customer service, and most users report positive experiences with the support team.

Pros and Cons of Kraken

Pros:

• Wide range of supported cryptocurrencies
• Strong security features, including two-factor authentication and cold storage
• Low and transparent fees with volume-based discounts
• Advanced trading tools and options like futures and margin trading
• Staking services with passive income opportunities
• Easy-to-use mobile app

Cons:

• Some users report slower customer support during peak times
• Limited fiat deposit options for some regions
• Futures and margin trading can be risky for inexperienced traders

Conclusion

Kraken is undoubtedly one of the top cryptocurrency exchanges in the world, offering a comprehensive suite of features for both novice and experienced traders. With its strong security, wide range of supported assets, competitive fees, and advanced trading tools, Kraken has earned its reputation as a reliable platform for crypto trading.

Whether you are a long-term investor interested in staking or a trader looking to engage in margin or futures trading, Kraken has something to offer. As the cryptocurrency market continues to evolve, Kraken’s commitment to security, transparency, and customer support ensures that it will remain a top choice for users seeking a trusted exchange for their digital assets.