On Friday, Binance announced the integration of the Arbitrum One core network and opened Ether (ETH) deposits on the Arbitrum One layer two.

Arbitrum is a third-generation layer-two optimistic rollup protocol that runs on an off-chain Ethereum contract and has lower costs and faster transactions than on the Ethereum mainnet.

The announcement notes that Binance users can now deposit any ERC-20 token from the Ethereum network with Arbitrum at a reduced transaction cost. In addition, Binance also stated that it will enable ETH withdrawals on the Arbitrum One Network layer two in the near future, making it one of the first centralized exchanges with layer-two support.

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Ethereum, arguably the most prominent blockchain network in the world, has been hampered by network congestion and exorbitant fees, stymieing its exponential growth. Arbitrum One offers a solution to this problem by utilizing a multilayered Ethereum consensus protocol that allows for unlimited scalability and near-instantaneous transaction times at a fraction of the cost.

Binance’s integration of layer-two ETH deposits is a significant step forward, coming at a time when decentralized exchanges and cross-chain atomic swaps are gaining popularity in the market. Binance is one of the world’s largest cryptocurrency exchanges by volume, and the Arbitium integration is good news for Ethereum adoption.

Related: Why Interoperability Is the Key to Future Innovation and Adoption

The launch of the Arbitrum One Network layer two did not include an announcement for ETH withdrawals, but it did promise that more information would be provided when this functionality is available to traders. However, it has been reported that Binance is preparing to let users withdraw their funds directly to Arbitrum.

HOLY COW!!!!! Binance about to enable layer two withdrawals directly to Arbitrum, this is MASSIVE for #ethereum adoption! pic.twitter.com/h069X4gfZM

— Lark Davis (@TheCryptoLark) November 19, 2021

According to a tweet from Lark Davis, a crypto investor from New Zealand, Binance is working on allowing direct ETH withdrawals to Arbitrum. According to Lark, the integration will be “MASSIVE for Ethereum adoption.” A screenshot showing reduced transaction costs and time is included with the message.

The integration of layer-two functionality is a major stride forward in the right direction, as Ethereum strives toward scalability and Ethereum 2.0. It’s worth noting that the launch of Ethereum 2.0 won’t stop layer-two platforms from working to solve for scalability. Instead, technologies like rollups or side chains will continue to aid Ethereum 2.0 scale beyond its current capacity once sharding is completely implemented.