Crypto exchange OKX has unveiled the official release of its Layer-2 blockchain, X Layer, on the public mainnet.

X Layer, formerly identified as X1, is constructed using Polygon’s Chain Development Kit (CDK), which integrates zero-knowledge technology to enable developers to craft customized chains.

The utilization of the letter “X” in the title symbolizes openness and interoperability, while the term “LAYER” signifies the array of protocols collaborating to enhance the scalability of a blockchain network.

This recent development aligns with the growing trend among leading crypto exchanges to establish their own layer-2 networks. In a similar move, Coinbase introduced its Base blockchain in August, leveraging Optimism’s OP Stack. Reports also suggest that Kraken is exploring the development of its layer-2 blockchain.

Per OKX’s press release, the exchange’s developers will actively contribute to the CDK codebase. Additionally, X Layer will integrate with Polygon’s broader ecosystem through the AggLayer, a solution aimed at consolidating liquidity across various chains developed with Polygon’s technology.

In a statement by Mark Boiron, CEO at Polygon Labs, he mentioned, “OKX’s 50 million users now have an easy path to onboarding to X Layer and all the other chains connected to the AggLayer.”

X Layer was initially launched on a testnet in November and currently supports over 170 decentralized applications (dapps), with plans for further expansion in the near future.

Positioned as a fundamental element of the web3 ecosystem, the network likens Layer-2 chains to highways that streamline access to dApps and self-hosted wallets.

The introduction of X Layer coincides with OKX’s increased focus on compliance activities in the United States. While regional regulators, including the SEC in the US, have indicated that most cryptocurrencies fall under securities regulations, their stance on memecoins remains undisclosed.

Amid concerns regarding regulatory compliance with offshore exchanges, OKX recently removed USDT from its European services and executed an unprecedented freeze of USDT assets in partnership with Tether.

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