Kraken follows Coinbase’s lead with plans to launch Layer 2 network: report

Quick Take

  • Kraken is reportedly in talks with Polygon, Matter Labs and Nil Foundation about a potential partnership.

Kraken, the crypto exchange operator, is reportedly seeking a partner to help with the creation of a new Layer 2 blockchain — following the lead of rival exchange Coinbase.

Coinbase introduced Base, its Layer 2, in February of this year, and has quickly hoovered up market share while diversifying its revenue streams.

Kraken is now weighing working in partnership with Polygon, Matter Labs or Nil Foundation to build out a Layer 2 network of its own, according to a report published today by CoinDesk. Coinbase’s Base uses the OP Stack, from the team behind Optimism.

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Kraken did not immediately respond to a request for comment, but a spokesperson told CoinDesk that the company is “always looking to identify and solve for new industry challenges and opportunities,” while declining to share further details.

Kraken is currently advertising a job vacancy for a “Senior Cryptography Engineer” who could be tasked, among other things, with the “design and implementation of layer-2 solutions.”


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About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.

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