Ethereum Layer 2 Kinto has migrated to the Arbitrum ecosystem via the Arbitrum Nitro technology stack after previously launching its testnet using Optimism’s OP Stack in May.
The migration follows a change in the structure of the Arbitrum Orbit ecosystem of chains that gave the Arbitrum Foundation more autonomy in negotiating Layer 2 deployments, according to a statement.
Kinto claims it can bridge the gap between traditional finance and decentralized finance by building a KYC-compliant Layer 2 to support both modern financial institutions and decentralized protocols. It also aims to reduce the risk of DeFi exploits, by providing built-in insurance for all smart contracts.
Why Arbitrum?
The decision to migrate to Arbitrum was driven by the need to provide comparable levels of security, reliability and regulatory compliance typical of traditional financial systems, while reducing the costs and friction associated with traditional asset issuance.
“Arbitrum’s ability to provide a credible neutral, efficient and mature platform, with a strong understanding of decentralized finance, made it a perfect fit for the creation of Kinto,” the team said.
“Arbitrum is the undisputed leader in rollup when it comes to adoption, TVL and technology maturity,” added Kinto founder Ramon Recuero. “Arbitrum is a community-driven ecosystem with thousands of projects built by crypto natives and we’re excited to add Kinto to that discussion. We are trying to bridge TradFi and DeFi without alienating the principles and ethos of crypto, and Arbitrum is the best place to do that.”
Earlier this month, Kinto announced that it had raised $5 million in two funding rounds from investors including Kyber Capital Crypto, Spartan Group and Parafi. Kinto’s mainnet launch is scheduled for the first quarter of 2024.