Kraken, one of the largest cryptocurrency exchanges in the U.S., is reportedly considering launching its own layer 2 network and is in talks with leading blockchain technology firms according to the sources. The exchange is said to be considering Polygon, Matter Labs, and the Nil Foundation, among other technology providers, as the basis for the new network. The move would bring Kraken in line with rival Coinbase, which launched its own layer-2 network earlier this year using the OP Stack from the OP Labs team that built Optimism.
Crypto Firms Ramp Up Offerings as Blockchain Builders
Many significant crypto companies have been seeking to expand their presence as blockchain builders, either as a potential source of new revenue or as an extension of their current operations. In August, Coinbase rolled out its Base Layer-2 network, the second-largest network on top of the Ethereum blockchain, while Polygon, a leading developer of Ethereum scaling solutions, released its own software toolkit earlier this year that enables developers to spin up their own blockchains.
Matter Labs, the developer of the zkSync layer-2 network, is also said to offer its technology to upstart builders. Layer 2 networks provide a solution to the issue of high transaction fees and slow processing times associated with the Ethereum blockchain by offering a second layer of infrastructure on top of the existing blockchain. By launching its own layer 2 network, Kraken would be able to process a higher volume of transactions at a lower cost, thus potentially attracting more users to its platform.
Kraken’s is Growing Interest as a Blockchain Builder
Kraken is expanding its team with a new role advertised on their website for a “Senior Cryptography Engineer.” The company is seeking applicants who possess strong knowledge of contemporary cryptography, including ZK proofs, and who could potentially work on designing and implementing layer-2 solutions.
“We are enthusiastic about open source, layer-2 technologies, zero-knowledge proofs, multi-party computation, and continuously strive to explore the potential of on-chain scaling solutions,” the job description reads. “The team has recently embarked on exploring how more protocols and decentralized applications can be integrated into Kraken.”
This move indicates Kraken’s growing focus on strengthening its cryptographic capabilities as they continue to grow and diversify their offerings in the cryptocurrency market.