- Kraken is in talks with blockchain technology firms like Polygon to launch its Layer 2 network.
- The exchange is strategizing to boost transaction efficiency and expand its market presence, following Coinbase’s Layer 2 success.
Referencing the CNF’s earlier post, Kraken‘s pivot to Layer 2 networks heralds a new chapter for U.S. crypto staking and marks a potential shift in exchange dynamics. CoinDesk sources indicate that Kraken is weighing a partnership with blockchain giants like Polygon to build a network that could rival Coinbase’s Layer 2 offering. This aligns Kraken with the competitive trajectory set by Coinbase’s successful foray into enhanced transactional platforms.
Expanding as Blockchain Builders
The expansion into blockchain development signifies a broader trend among crypto firms to innovate and diversify their offerings. Kraken is following in the footsteps of Coinbase, seeking to carve out a space within the Layer 2 solutions market, which promises enhanced transactional throughput and lower fees than the Ethereum mainnet.
Related article: NEWS Coinbase and Kraken Confirm XRP Relisting after Landmark Legal Win
Kraken’s Strategic Layer 2 Ambitions
As part of its strategy to establish itself in the Layer 2 network space, Kraken has put out a call for a Senior Cryptography Engineer who would bring expertise in cutting-edge technologies like zero-knowledge proofs to the table. This recruitment drive indicates Kraken’s serious commitment to building a competitive Layer 2 network and enhancing its service offerings.
A Careful Selection of Technology Partners
Kraken’s plans to introduce its own Layer 2 network are still in the formative stages, and the crypto community watches with interest to see whether the exchange will finalize its collaboration with Polygon or opt for another tech provider. The decision will significantly impact Kraken’s ability to scale its operations and compete with rivals such as Coinbase, which has already established a foothold in the Layer 2 space.
From an analytical standpoint, the relisting of XRP by Coinbase and Kraken could set a precedent for other digital assets that have faced similar regulatory hurdles. If this trend continues, the crypto market could witness a resurgence in tokens that have previously been under scrutiny, potentially leading to a more diverse and robust trading environment. As investors and traders watch on, the overarching sentiment is one of cautious optimism, with a keen eye on how this development might shape the regulatory discourse around cryptocurrencies in the future.
