Share this article
Polygon Merges With Hermez Network in $250M Deal
This is the first complete merger of one blockchain network into another.
Updated May 9, 2023, 3:22 a.m. Published Aug 13, 2021, 2:36 p.m.
Make us preferred on Google
Polygon, a "layer 2" platform on the Ethereum blockchain, is merging with rollup platform Hermez Network in a 250 million MATIC deal. The acquisition was worth about $250 million based on MATIC's price on Aug. 4, when the deal was struck.
Hermez will be absorbed into the Polygon ecosystem under the name Polygon Hermez, where it will become a part of Polygon’s line of products, including Polygon SDKhttps://polygon.technology/polygon-sdk/ and Polygon Avail. The entire Hermez project – its employees, technology and native HEZ token (which holders will be able to exchange at a rate of 3.5 MATIC: 1 HEZ) – will be integrated into Polygon’s platform.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Polygon’s merger with Hermez is the first complete merger of one blockchain network into another.
Earlier this year, two Ethereum projects, Keep and NuCypher, announced a merger of their protocols into a decentralized autonomous organization (DAO) in a project nicknamed “Keanu,” but will keep their brands and companies separate. And Yearn Finance frequently announces mergers and partnerships, but it is unclear what is happening under the surface of those deals.
Polygon’s absorption of Hermez’s team and protocol is something different entirely.
Read more: ‘Keanu’ Explained: What It Means to Merge Two Ethereum Projects
Hermez is a zero-knowledge (ZK) rollup, which means that it uses mathematical proofs to verify and settle transactions. As Ethereum struggles with transaction bottlenecks, rollups have emerged as the preferred scaling strategy. And Hermez, which is the only decentralized rollup, is a user favorite.
The Polygon-Hermez merger is part of Polygon’s new strategic focus on ZK technology, also announced Friday. Polygon has made a $1 billion commitment to developing ZK-based systems, forming partnerships, hiring employees and acquiring ZK teams and projects like Hermez.
“We consider ZK cryptography the single most important strategic resource for blockchain scaling and infrastructure development, and we have a clear goal of becoming the leading force and contributor in this field for years to come,” Polygon co-founder Mihailo Bjelic told CoinDesk.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Cometh founder Jerome de Tychey is applying DeFi lending and borrowing on platforms like Aave, Morpho, and Uniswap to structures that help the ultra-wealthy secure loans against their massive crypto fortunes.
What to know:
- Wealthy investors who hold much of their fortune in crypto are increasingly turning to decentralized finance platforms to secure flexible credit lines without selling their digital assets.
- Firms like Cometh help family offices and other rich clients navigate complex DeFi tools, using assets such as bitcoin, ether and stablecoins to replicate traditional Lombard-style collateralized loans.
- DeFi loans can be faster and more anonymous than traditional bank credit but carry volatility and liquidation risks, and Cometh is also experimenting with applying DeFi strategies to traditional securities via ISIN-based tokenization.
Top Stories
