Kraken, a prominent U.S. cryptocurrency exchange, is contemplating collaborating with leading blockchain technology firms to establish its own layer 2 network, according to anonymous sources familiar with the matter. This strategic move aligns Kraken with its rival Coinbase’s earlier launch of a layer-2 network known as Base.
The cryptocurrency exchange is currently evaluating potential partners, including Polygon, Matter Labs, and Nil Foundation, among others, as the foundation for their new network. The discussions are ongoing and have not been publicly disclosed. Kraken has not officially announced any details, stating, “We’re always looking to identify and solve new industry challenges and opportunities,” as per a spokesperson.
Notably, major crypto companies are increasingly venturing into blockchain development as a means to expand their revenue streams or extend their current operations. In August, Coinbase introduced its own layer 2 network, Base, built on the OP Stack, developed by the OP Labs team.
Polygon, a leading Ethereum scaling solutions developer, offers Polygon PoS network and the Polygon zkEVM. Matter Labs, the creator of zkSync layer-2 network, provides its technology to emerging blockchain builders.
Kraken has recently posted a job vacancy for a “Senior Cryptography Engineer” on its careers page, seeking candidates with expertise in modern cryptography, including ZK proofs. The role involves designing and implementing layer-2 solutions and reflects Kraken’s interest in open-source, layer-2 technologies, zero-knowledge proofs, and exploring on-chain scaling solutions.
In this evolving landscape, Kraken aims to leverage its strengths and integrate more protocols and decentralized applications into its platform, further expanding its footprint in the blockchain space.