Kraken Explores Layer 2 Network Development
Crypto exchange Kraken is actively considering Polygon, Matter Labs, and Nil Foundation as potential partners to build a new layer 2 scaling solution, according to sources familiar with the matter.
The move comes in response to the success of rival exchange Coinbase, which launched its own Base layer 2 network in August, utilizing technology from Optimism. Coinbase’s offering has rapidly gained market share, highlighting the advantages for exchanges expanding into layer 2 solutions.
“We’re always looking to identify and solve new industry challenges and opportunities,” said a Kraken spokesperson. “We don’t have anything further to share at this time.”
Kraken recently posted a job opening for a Senior Cryptography Engineer to focus on the “design and implementation of layer-2 solutions,” emphasizing the importance of “enthusiasm for open source, layer-2 technologies” such as zero-knowledge proofs.
The job description reveals, “The team has recently embarked on exploring how more protocols and decentralized applications can be integrated into Kraken.”
Kraken’s Commitment to Layer 2
This move underscores Kraken’s dedication to exploring layer 2 capabilities to remain competitive in the cryptocurrency exchange space. Major players like Kraken and Coinbase are increasingly leveraging their trusted brands and customer bases to expand their blockchain offerings.
By partnering with an established layer 2 developer like Polygon, Kraken aims to expedite the development of its offering, enabling it to compete effectively with Coinbase and capture a significant market share. However, as plans are still in the early stages, it remains uncertain whether Kraken will choose Polygon or one of the other contenders to build its layer 2 infrastructure.