Kraken Plans to Launch Its Own Layer-2 Network, According to Report

Kraken Considers Launching Layer-2 Network

Reports from CoinDesk suggest that United States-based cryptocurrency exchange Kraken is exploring the possibility of launching its own layer-2 network. The exchange is said to be considering the technology of several blockchain firms, including Polygon Labs, Matter Labs, and Nil Foundation, as the base for the new network.

Discussions Still Ongoing

Unnamed sources have indicated that discussions surrounding Kraken’s intentions to launch a layer-2 network are still ongoing, and there may be other teams involved. A spokesperson for Kraken stated, “We’re always looking to identify and solve for new industry challenges and opportunities. We don’t have anything further to share at this time.”

While Kraken has not confirmed or denied the rumor about the layer-2 network launch, the exchange has recently added a job posting and is looking to hire a “Senior Cryptography Engineer.” Kraken revealed that it was passionate about layer-2 technologies and is exploring how to integrate more protocols into its system.

Following Coinbase’s Steps

Kraken’s potential move follows in the footsteps of rival crypto exchange Coinbase, which launched its layer-2 network Base three months ago. Base was built on the OP Stack in collaboration with the team behind Optimism, another Ethereum-based layer-2 blockchain.

Within a short time after Base’s launch, the network has grown to become one of the largest layer-2 networks on the Ethereum blockchain, with the likes of Polygon, Arbirtrum, and Optimism. The protocol has also earned the spot as the fastest-growing layer-2 network, having garnered over 52 million unique addresses with a daily increase of 138,000 per data from Base Scan.

As rumors about Kraken’s intentions circulate, the crypto community has reacted, with some members supporting the potential launch and others opposing the move on the basis that the industry already has enough layer-2 networks.