Kraken Eyes Layer 2 Blockchain Network In Pursuit of Coinbase’s Footsteps

Kraken is reportedly considering launching its own Layer 2 network, mirroring the strategic move made by Coinbase earlier in the year, which significantly enhanced its revenue avenues and market dominance. Kraken, with its history of proactive industry engagement, is eyeing a similar model to elevate its market stance.

Kraken is mulling over partnerships with prominent blockchain technology providers such as Polygon, Matter Labs, and the Nil Foundation to support its Layer 2 aspirations. Although the details of these plans are not fully disclosed, the collaborations indicate Kraken’s commitment to expanding its technological infrastructure. Polygon’s toolkit for developers and Matter Labs’ zkSync offer robust foundations for Kraken’s envisioned Layer 2 solutions.

Major crypto firms are increasingly venturing into blockchain development as a means to extend their brand and revenue. This was notably seen when Coinbase launched its Layer 2 network using Optimism’s technology, highlighting a trend where established companies are not just participating in but also shaping the blockchain landscape.

Kraken’s job listing for a “Senior Cryptography Engineer” points to an intensified focus on Layer 2 technologies, with responsibilities that include the design and implementation of such solutions. The job description emphasizes Kraken’s dedication to exploring open-source technologies, zero-knowledge proofs, and on-chain scaling solutions, suggesting a strong push towards enhancing blockchain capabilities.

A Kraken spokesperson has confirmed to CoinDesk that the company is actively exploring innovative solutions to industry challenges, though they have withheld specific details about their Layer 2 network plans, creating a sense of anticipation about Kraken’s next moves in the blockchain space.