Kraken, a cryptocurrency exchange, is actively considering Polygon, Matter Labs, and Nil Foundation as potential partners for the development of a new layer 2 scaling solution. This information was obtained from sources with knowledge of the matter, as reported by CoinDesk.
By pursuing this initiative, Kraken aims to emulate its rival exchange Coinbase, which introduced its own Base layer 2 network in August, utilizing technology from Optimism. Coinbase’s offering has swiftly gained traction, highlighting the advantages of exchanges expanding into layer 2 solutions.
A Kraken spokesperson, when approached for comment, stated, “We are constantly seeking solutions for emerging challenges and opportunities within the industry. However, we do not have any further information to share at this time.”
Kraken recently advertised a job opening for a Senior Cryptography Engineer, specifically focused on the design and implementation of layer-2 solutions. The job listing underscores the importance of being enthusiastic about open-source technologies and layer-2 solutions, such as zero-knowledge proofs.
The job description also reveals that the Kraken team is currently exploring ways to integrate more protocols and decentralized applications into their platform.
This move signifies Kraken’s commitment to exploring layer 2 capabilities to maintain competitiveness in the cryptocurrency exchange market. Major players like Kraken and Coinbase are increasingly looking to leverage their well-established brand names and customer bases to expand their blockchain offerings.
By considering a partnership with a reputable layer 2 developer like Polygon, Kraken hopes to expedite the development of its layer 2 solution to compete with Coinbase and capture a larger market share. However, as plans are still in the early stages, it remains uncertain whether Kraken will ultimately choose Polygon or one of the other potential candidates to build its layer 2 infrastructure.