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Kraken explores partnerships for Layer 2 network development

EditorAmbhini Aishwarya
Published 11/07/2023, 12:14 AM
Updated 11/07/2023, 12:14 AM

Kraken, a leading US cryptocurrency exchange, is actively exploring strategic partnerships with Polygon, Nil Foundation, and Matter Labs to develop its layer 2 (L2) scaling solution. The move is seen as an attempt to compete with Coinbase (NASDAQ:COIN)'s dominant Base layer 2 network, which was developed using Optimism's technology. According to CoinDesk sources, these potential partners were selected due to their advanced technology offerings in blockchain development.

The crypto industry has recently witnessed a surge in blockchain development activities by established firms such as Polygon. This company provides a comprehensive toolkit for developing Ethereum Mainnet-based blockchain networks and unique scaling solutions.

Earlier this year in August, Coinbase launched its Base blockchain using OP Stack software from Optimism, marking the beginning of autonomous distributed networks managed by public companies. The Base network amassed $139 million in deposits even before its public launch.

Kraken's commitment towards the development of open-source technologies, L2 technologies, and on-chain scaling solutions is evident from its recent job advertisement for a Senior Cryptography Engineer. The company is looking for professionals who have a keen interest in open source, zero-knowledge proofs, and decentralized applications.

The final decision on who will expedite the development of Kraken’s layer 2 capabilities to effectively leverage their customer base and trusted brand remains undecided.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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