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Cardano Wants to Develop Layer-2 Network with Crypto Exchange Kraken

The crypto exchange Kraken is planning to establish its own layer-2 network. Founder Charles Hoskinson has now positioned Cardano (ADA) as a potential partner. The model for the project is Base from Coinbase. Kraken is likely to be looking for a partner that brings as many users and therefore capital as possible, that’s why it might not partner with Cardano.




With the launch of Base as a layer-2 network, the crypto exchange Coinbase landed a success in August. With apps such as, Base is demonstrating how such a blockchain play can quickly attract users and capital.

Against this backdrop, the crypto exchange Kraken’s plan to launch its own layer 2 network is logical. Base is based in the Ethereum (ETH) ecosystem – and Kraken is still in the decision-making process.

Read more about a possible partnership between Cardano and Kraken to create a layer-2 network, and find the latest business news of the day with the Born2Invest mobile app.

The founder of Cardano (ADA), Charles Hoskinson, has now thrown his hat into the ring at X

Hoskinson called on Jesse Powell to write to him directly. Powell is a co-founder of Kraken. Cardano has gradually improved its sidechain capabilities over the past few months with upgrades such as Valentine. A cooperation between Cardano and Kraken for a layer-2 network would probably be relatively easy to implement technologically. Whether Hoskinson will be successful with his offer is another question.

The specialist portal Coindesk reports that Kraken is internally considering Polygon (MATIC), Matter Labs, and the Nil Foundation as partners. Cardano is not mentioned in this report, which is based on sources at Kraken. Hoskinson, on the other hand, has already rebuffed attempts by Solana (SOL) and Dogecoin (DOGE) to persuade them to dock with Cardano.

Realistically, Cardano is only one candidate.. Source

Conclusion: Cardano and Kraken with a joint layer-2 project?

Hoskinson is controversial in the crypto scene due to his often brusque demeanor. His offer regarding Cardano for Kraken could also be read as arrogant. Because the data from DeFiLlama proves it: Base from Coinbase is clearly outperforming the entire Cardano ecosystem in the metrics of capital deployed and active users for layer-2 solutions after just a few months.

If Kraken does the math, this is a big minus point. Because Kraken is likely to be looking for a partner that brings as many users and therefore capital as possible. Jesse Powell for Kraken remains silent – at least publicly. He is probably pleased that competition has begun behind the scenes to see who will become Kraken’s Layer 2 partner. Realistically, Cardano is only one candidate.


(Featured image by Traxer via Unsplash)

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Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.