Ethereum Layer-2 Protocol Kinto Launches on Arbitrum Network
Ethereum Layer 2 protocol Kinto has migrated to the Arbitrum ecosystem through the Arbitrum Nitro technology stack. This move comes after its previous testnet launch in May using Optimism’s OP Stack.
We are extremely happy to partner with Arbitrum in our mission to accelerate the transition to an on-chain financial system.
Stay tuned for more. https://t.co/MbkzTl421j
— Kinto (@KintoXYZ) November 21, 2023
In a November 21 press release, the protocol stated that the transition is geared towards creating a seamless pathway between traditional and decentralized finance through know-your-customer (KYC) and anti-money laundering (AML) capabilities.
Kinto is a decentralized, non-custodial, and the first KYC’ed Layer 2 network ever created.
However, the platform goes beyond conventional Layer 2 offerings by providing developers with the necessary tools to build financial applications while integrating mandatory KYC/AML processes. This ensures user identities are verified and all regulatory requirements are met.
BREAKING NEWS: #Ethereum Layer 2 #Kinto migrates to the Arbitrum ecosystem#Crypto #Bitcoin #Cardano #Vechain pic.twitter.com/N4ZdM9903O
— Cheeky Crypto (@CheekyCrypto) November 21, 2023
Now powered by the Arbitrum ecosystem, the Layer 2 network emphasizes its enhanced capability to implement KYC verifications and offer built-in insurance for all smart contracts.
This structure is intended to reduce the ever-evolving exploits of the decentralized finance landscape.
Ramon Recuero, the founder of Kinto, lauded Arbitrum as an industry leader in the rollup space based on adoption, total volume locked (TVL), and technology maturity.
He noted Arbitrum’s status as a community-driven ecosystem fostering numerous projects by crypto-centric natives.
Expressing his excitement about the migration, Recuero stated that this development will enable Kinto to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi). This would be done without sacrificing the principles and ethos of the crypto space.
Anuja Khatri, the head of growth at Arbitrum Foundation, also lauded the Layer 2 protocol, recognizing it as another pioneer in the DeFi space with notable innovation capabilities.
“Kinto will drive innovation and deliver cutting-edge solutions that empower users and advance the adoption of blockchain technology, and we’re happy that they elected to do so within the Arbitrum ecosystem,” she said.
Core Principles & Latest Development Indicates Positive Trajectories Ahead
Despite the meteoric rise of the DeFi landscape, several exploits, including the latest breach of the Poloniex platform resulting in a loss of over $100 million worth of crypto assets, have underscored the vulnerabilities in the ecosystem.
Update on the @Poloniex hack
We can confirm that funds on ETH, TRON and BTC have been stolen
So far we can confirm at least the following lost:
ETH: $33m
TRON: $48.7m
BTC: $18.6mTotal loss at least ~$100m https://t.co/1KTQ1Ps303
— CertiK Alert (@CertiKAlert) November 10, 2023
To prevent reoccurring exploits and bring more users to the DeFi space, Kinto plans to integrate five unyielding principles: User Privacy, Decentralization, Security, Seamless UI/UX, and Built-in Multi-chain.
Together, these principles will enable developers to create non-custodial and security-based financial applications that tap into the liquidity of the DeFi landscape through Ethereum’s Arbitrum.
In 2022, $30 billion was lost in crypto due to hacks and scams.
Kinto⛩️ is here to offer a safe environment for financial applications and users. pic.twitter.com/sPmgJQDrY8
— Kinto (@KintoXYZ) November 18, 2023
Recent developments indicate these core pillars are paying off. On November 15, Kinto announced it had raised $5 million in two funding rounds to power its future as a reliable, secure, and compliant network for financial apps on Ethereum.
We are excited to formally announce our $5 million raise!
You can read more about it via @CoinDesk: https://t.co/yj8EjMh87V
Thank you to all our investors who supported us from day one including @paraficapital, @santiagoroel @AKlokus, @TheSpartanCap.
— Kinto (@KintoXYZ) November 15, 2023
Shortly after that, on November 16, Kinto entered a strategic partnership with TProtocol, a renowned network aiming to establish a liquidity hub for Real World Assets (RWAs) through its dynamic RWA lending protocol.
Kinto 🤝 TProtocol
We are excited to announce our partnership with @TProtocol_!
TProtocol is creating a liquidity hub for RWAs with their RWA lending protocol.
And they’re coming to Kinto! pic.twitter.com/Tm7RYH7msa
— Kinto (@KintoXYZ) November 16, 2023
The partnership would see TProtocol launch on Kinto, utilizing its KYC/AML features to create a more secure hub and prevent exploits.
On November 20, the Layer 2 network announced Engren, a program designed to validate users’ identity and reward participants through ‘Engren Credits.’
Kinto's launch program Engen starts TOMORROW.
You can validate your identity to join us from block zero.
Be part of transitioning the world's financial systems on chain.https://t.co/8dLlxaGcBU pic.twitter.com/0WClihr0Cn
— Kinto (@KintoXYZ) November 20, 2023
While this is scheduled to launch officially in the Spring of 2024, the immense growth and possibilities Kinto brings are immersive and may drive an upward trajectory for more innovations.
