Offchain Labs, the developer of Ethereum’s leading Layer-2 network Arbitrum, has entered a one-year exclusive agreement with San Francisco-based Succinct Labs to add a modular zero-knowledge proving layer to the roll-up. Replacing Arbitrum’s existing optimistic proofs with cryptographic ZK proofs is expected to cut withdrawal times, introduce multi-prover security and improve cross-chain interoperability. Succinct, led by Chief Executive Officer Uma Roy, said a working prototype of the system is already operational. Community projections suggest the upgrade could generate “hundreds of millions” of dollars in additional fee revenue for the network and for stakers of Succinct’s PROVE token. The token began trading on Kraken this week, and crypto exchange HTX has flagged related promotional events. Arbitrum’s shift underscores a broader pivot by Ethereum roll-ups toward zero-knowledge technology, following similar moves announced by networks such as Mantle and World Chain. With Arbitrum currently commanding the largest share of total value locked among Layer-2s, the adoption of ZK proofs is viewed as a key milestone in scaling Ethereum to a wider user base.