Kraken Seeking Partners To Build Own Layer-2 Network

According to anonymous sources, Kraken, a renowned cryptocurrency exchange based in the United States, is considering working with major blockchain technology companies to establish its own layer 2 network. The move follows competitor Coinbase's earlier introduction of its own layer 2 network, Base.

Kraken is claimed to be looking at collaborations with Polygon, Matter Labs, and the Nil Foundation, among others. The conversations, however, are still ongoing and have not been made public. Kraken has remained tight-lipped about its future, with a spokeswoman saying that the company is always exploring new industry challenges and possibilities.

Several large crypto businesses with well-established customer bases have entered the blockchain development space in order to create new revenue streams, or extend their existing operations. Coinbase, for example, recently introduced Base, their layer 2 network that employs the OP Stack technology from Optimism. Despite launching a few months ago, Base got off to a strong start and is currently third in total valued locked (TVL) in the L2 sector.

Polygon, noted for its Ethereum scaling solutions, and Matter Labs, the creator of the zkSync layer 2 network, are two other prospective partners for Kraken. The exchange recently advertised a position for a Senior Cryptography Engineer, indicating an interest in layer 2 solutions and on-chain scaling.

Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.