Kraken Explores Layer 2 Network Development

Kraken, the largest cryptocurrency exchange in the United States, is reportedly in discussion with a number of the industry’s foremost blockchain technology companies regarding the development of its Layer 2 network.

This action would align Kraken with Coinbase’s decision to establish its layer-2 network earlier this year.

Kraken is reportedly discussing with Polygon, Matter Labs, and the Nil Foundation, among others, using their technology as the foundation for the new network.

The sources, who requested anonymity due to the undisclosed nature of the endeavor and the ongoing nature of the discussions, confirmed this. Other teams might participate in the talks as well.

“We are consistently seeking to recognize and address emerging challenges and prospects within the industry,” stated a Kraken spokesperson. “We have no additional information to provide at this time.”

Prominent cryptocurrency enterprises with established reputations and clientele have been actively pursuing opportunities to expand their operations as blockchain developers, either to generate additional revenue or as a natural progression of their existing activities.

Coinbase, a cryptocurrency exchange, introduced Base, its proprietary layer 2 network, in August. Base utilizes the OP Stack, developed by the OP Labs team, which also constructed Optimism, the second-largest layer-2 network atop the Ethereum blockchain.

Earlier this year, Polygon, a prominent provider of scaling solutions for Ethereum known for its Polygon PoS network and, more recently, the Polygon zkEVM, introduced a new software toolkit that enables developers to create and manage their blockchains.

The technology that powers the zkSync layer-2 network is also made available to fledgling manufacturers by Matter Labs.

The careers section of Kraken has recently been updated to include an advertisement for a “Senior Cryptography Engineer” who possesses “expertise in contemporary cryptography, including ZK proofs.” The candidate’s responsibilities may include “planning and executing layer-2 solutions.”

The job description states, “We are passionate about layer-2 technologies, open source, zero-knowledge proofs, and multi-party computation, and we are always looking to investigate the potential of on-chain scaling solutions.”

“Recently, the group investigated the possibility of integrating additional protocols and decentralized applications with Kraken.”