Originally published on: October 30, 2024
In a groundbreaking partnership, institutional market maker Flow Traders has joined forces with Wormhole, an interoperability protocol, to revolutionize cross-chain liquidity and performance. This collaboration, announced on Oct. 30, involves Flow Traders acquiring a stake in Wormhole’s native token and committing to enhancing multichain swaps within Wormhole’s network of cross-chain liquidity providers.
Michael Lie, Global Head of Digital Assets at Flow Traders, highlighted the challenges posed by the fragmentation in multi-blockchain ecosystems. He emphasized the importance of simplifying and unifying the ecosystem while boosting interoperability through this strategic partnership.
Wormhole’s Solvers will now be competing in real-time to fulfil cross-chain transfer requests, including complex cross-chain “intents” that streamline multi-step trades in a single transaction. The specifics of Flow Traders’ investment in Wormhole have not been disclosed yet.
This move by Flow Traders and Wormhole is part of a larger trend towards institutional involvement in cryptocurrency markets. Tokenization platform Securitize recently integrated Wormhole’s messaging infrastructure to enable cross-chain capabilities for assets tokenized through its platform. Additionally, Chainlink has partnered with Swift for blockchain payments, aiming to maintain transaction privacy and store market data on-chain for institutions.
Flow Traders, known for its core market-making role in cryptocurrency exchange-traded funds (ETFs), has facilitated approximately $500 million in crypto assets trading in the second quarter of 2024. This partnership sets the stage for increased institutional adoption of tokenized assets, as highlighted by Robinson Burkey, Co-founder, and Chief Commercial Officer at Wormhole Foundation.
Wormhole, a blockchain protocol specializing in message transmission and verification among various blockchains, connects almost 30 networks and layer-2 scaling chains, including Ethereum, Solana, and Avalanche. The seamless integration of cross-chain liquidity is poised to drive significant advancements in the world of tokenized assets.
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