30s Summary
Flow Traders has partnered with the Wormhole protocol to enhance cross-chain liquidity and performance. Flow Traders will buy a portion of Wormhole Foundation and facilitate multi-chain swaps. Wormhole focuses on real-time, complex cross-chain transfers. The partnership is part of Wormhole’s push into institutional cryptocurrency markets. Flow Traders provides liquidity for crypto ETFs and traded around $500 million in crypto assets in Q2 2024. The smoother integration across chains may encourage more institutions to adopt tokenized assets. Wormhole connects around 30 networks including Ethereum, Solana and Avalanche.
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Flow Traders, a big player in the market, is teaming up with Wormhole, a protocol that enhances interoperability, to make cross-chain liquidity and performance better, according to an announcement made on October 30th.
As part of this deal, Flow Traders is getting some skin in the game by buying a chunk of Wormhole Foundation and pledging to facilitate multi-chain swaps as a part of Wormhole’s collection of cross-chain liquidity providers. They haven’t said how much Flow Traders is actually throwing down for this deal, though.
“One of the most serious issues we’re dealing with is that multiple blockchain ecosystems are pretty fragmented,” said Michael Lie, the big kahuna of digital assets at Flow Traders.
According to Lie, it’s super important to clean up and bring together the ecosystem while boosting how well it interoperates.
The thing with Wormhole is that their so-called Solvers have to work around the clock, competing in real time, to fulfill requests for cross-chain transfers. And these aren’t just your regular, run-of-the-mill transfers — they also get those multi-step, complex trades served up in a single transaction.
As part of a wider push into institutional cryptocurrency markets, Wormhole has struck this deal with Flow Traders. This kind of partnership isn’t new in the blockchain industry. Back in September, the tokenization platform Securitize integrated Wormhole’s technology, aiming to bring cross-chain capabilities to all assets tokenized through the Securitize platform.
For its part, Flow Traders has turned into a critical middleman for exchange-traded funds (ETFs) dealing in cryptocurrency in the U.S. and other places. It offers liquidity to back crypto ETFs, like iShares Bitcoin Trust and Grayscale Bitcoin Trust, to name a couple.
The company traded around $500 million in crypto assets in the second quarter of 2024, per its quarterly financial report.
Smoother integration across chains “sets the stage for more institutions to adopt tokenized assets,” said Robinson Burkey, one-half of Wormhole Foundation’s founding duo and its chief commercial guy.
Just to give you a sense of what Wormhole does, it’s a blockchain protocol that focuses on sending and recording messages, including data on token transfers, between different blockchains. It connects a good 30 networks and layer-2 scaling chains like Ethereum, Solana, and Avalanche.
Source: Cointelegraph