Ethereum Layer 2 solution Kinto has successfully migrated to the Arbitrum ecosystem, leveraging the Arbitrum Nitro technology stack. This transition follows Kinto’s initial testnet launch in May, utilizing Optimism’s OP Stack. The decision to move to Arbitrum was prompted by a restructuring of the Arbitrum Orbit ecosystem, granting the Arbitrum Foundation increased autonomy in negotiating Layer 2 deployments.
Kinto positions itself as a bridge between traditional finance and decentralized finance (DeFi), offering a KYC-compliant Layer 2 infrastructure to support both modern financial institutions and decentralized protocols. Aiming to mitigate DeFi risks, Kinto provides built-in insurance for all smart contracts, enhancing the security of its ecosystem.
The migration to Arbitrum reflects Kinto’s commitment to delivering levels of security, reliability, and regulatory compliance comparable to traditional financial systems while streamlining the costs and friction associated with traditional asset issuance. The Arbitrum platform was chosen for its reputation as a credible, efficient, and mature solution within the rollup space, with a strong understanding of decentralized finance.
Ramon Recuero, Founder of Kinto, emphasized Arbitrum’s leadership in adoption, total value locked (TVL), and technology maturity within the rollup space. Recuero expressed excitement about integrating Kinto into Arbitrum’s community-driven ecosystem, aligning with the foundation’s goal of extending a bridge for traditional finance into DeFi while preserving the principles and ethos of the crypto space.
Kinto recently secured $5 million in funding across two rounds from investors such as Kyber Capital Crypto, Spartan Group, and Parafi. The mainnet launch for Kinto is scheduled for Q1 2024, marking a significant step in its mission to revolutionize decentralized finance with enhanced security and regulatory compliance.