Cardano founder Charles Hoskinson has hinted at a potential collaboration with cryptocurrency exchange Kraken, extending a proposal to CEO Jesse Powell on plans for the exchange’s Layer-2.
The proposal comes as Kraken actively looks for a blockchain developer to enhance its technological capabilities, with several players already in the running.
Hoskinson Expresses Interest In Kraken Partnership
Cardano founder Hoskinson made the proposal in a post made on X (formerly Twitter) on the 12th of November, indicating an interest in partnering with Kraken to develop a Layer-2 network. The proposal comes at a time when Kraken is actively looking for a blockchain partner that can help it build its Layer-2 network.
It was revealed earlier during the week that Kraken was looking for a partnership with the likes of Polygon and Matter Labs. The cryptocurrency exchange was keen on choosing one of the blockchain developers mentioned above to help implement the Layer-2 network. For Kraken, developing a Layer-2 network is one of the strategies it implements to provide solutions to novel challenges faced by the crypto industry, along with helping the exchange tap into emerging markets and opportunities.
Competition Growing
With a number of major crypto entities and blockchain developers vying for the position of becoming Kraken’s partner, competition is building up with considerable intensity. The post by Hoskinson reaching out directly to the Kraken CEO can be seen as a direct way of “shooting his shot” and expressing his interest in partnering with the cryptocurrency exchange.
Launching Layer-2 networks has become a trend among major crypto entities and exchanges. The move helps exchanges expand operations in a way that looks to accommodate blockchain technology development. Apart from helping create an additional revenue stream, it also helps crypto firms and exchanges establish their presence in the ever-evolving crypto landscape and access newer markets.
Coinbase’s Base Leads The Way
Conbase’s foray into the Layer-2 space with Base has shown others in the market just what is possible with Layer-2. Coinbase, the largest cryptocurrency exchange in America, launched its Base Layer-2 network only a few months ago, generating considerable traction among the community.
Coinbase’s Base is built on the OP Stack, which is a scalable tech stack built by the team behind Optimism. Since its launch, it has dramatically enhanced the efficiency and user experience of running decentralized applications (dApps) on Ethereum.
Base has exceeded $300 million when it comes to Total Value Locked (TVL), making it the most popular chain. The Layer-2 network has helped increase the cryptocurrency exchange’s market share. Other social protocols, such as Friend Tech, have also boosted the outlook of Base. Hoskinson is keen to help Kraken chart a similar path for the exchange if it is chosen to partner with the exchange.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
