In-depth essays · #37 / 50 · L2 Rollups, Federations & Interoperability
Why Exchanges and Fintechs Now Build Ethereum L2s Instead of Standalone L1s: Base, Ink, Mantle, and Robinhood
Tracing the shift from first-generation exchange L1s (BNB, Cronos) to second-generation Ethereum rollups
In 2020–2021, when major exchanges like Binance (BNB Chain) or Crypto.com (Cronos) launched on-chain networks, they built standalone EVM Layer-1s. Since 2023, however, Coinbase (Base), Kraken (Ink), Mantle, and Robinhood (Robinhood Chain) have all chosen to build Ethereum Layer-2 rollups. Here is why corporate strategy flipped.
1. First-Generation Exchange L1s: BNB Chain and Cronos
When Ethereum L1 gas spiked in 2020–2021, BNB Chain and Cronos offered users cheap EVM execution backed by their own validator sets, onboarding millions of retail users but requiring standalone consensus security and cross-chain bridges.
2. How Coinbase’s Base Proved the Tokenless L2 Model
In August 2023, publicly traded Coinbase launched Base on the OP Stack with no native token, using ETH for gas and settling directly on Ethereum L1. By inheriting Ethereum’s security and developer tooling while earning transparent sequencer margins, Base quickly grew into the busiest L2 district by daily transactions.
3. Kraken’s Ink, Mantle’s ZK Evolution, and Robinhood Chain
Following Base’s blueprint, Kraken launched Ink on the Superchain in December 2024 (reaching L2BEAT Stage 1 in 2025), Mantle upgraded its treasury-backed L2 into an OP Succinct ZK rollup, and in July 2026 Robinhood Chain launched on Arbitrum Orbit to bring tokenized stocks and ETFs directly onto an Ethereum L2.
4. Comparing Both Generations Across the Map
In Ethereum City, you can compare the southeastern island L1s (BNB Chain, Cronos) with the mainland L2 districts (Base, Ink, Mantle, Robinhood Chain) to see this six-year architectural evolution in action.
Related districts in the city
Related glossary terms
This essay is an explainer written to help you read the city; it is not investment advice. Facts on this page are as of 2026-10 and may change. If you spot a mistake, please tell us through the contact page.