Flow Traders and Wormhole joined hands for a mutually beneficial strategic partnership.
Institutional market maker Flow Traders has partnered with cross-chain protocol Wormhole to integrate its infrastructure for accessing liquidity across blockchains. Beyond the infrastructure addition, Flow will acquire Wormhole tokens to have a stake in the cross-chain protocol while also facilitating multichain swaps. That will occur as Flow becomes part of Wormhole’s solver network to process the transactions.
According to a release, Flow became the first trading firm to become a part of Wormhole’s solver network through this strategic relationship. “We’re thrilled to partner with Wormhole, both as an investor and a solver,” said Michael Lie, Global Head of Digital Assets at Flow Traders. “To enable broader adoption of digital assets, it’s essential to simplify and unify the ecosystem while enhancing interoperability, making it more cost-effective and accessible for all participants.”
This relationship will see Flow competing with other solvers to ensure cross-chain transaction requests are completed through decentralized measures. It will also involve Flow processing complex multistep trades within single transactions, which Wormhole calls Composable Intents.
“Institutional demand for a unified network is stronger than ever, and with Composable Intents, Wormhole is turning complex, multistep cross-chain actions into single, unified transactions, simplifying user experience and opening new possibilities for capital markets participants entering crypto,” stated Robinson Burkey, Co-founder of Wormhole Foundation. “By adding Flow Traders deep expertise, Composable Intents will allow for complex, multichain transactions workflows, accommodating to the needs of all users in a fast, cost-effective manner.”
Blockchain Infrastructure Is Witnessing Growing Demand
Wormhole’s new deal with Flow highlights the growth of the blockchain infrastructure niche, especially with growing institutional adoption. And infrastructure providers are capitalizing on this with strategic partnerships like these.
For instance, Securitize, a real-world asset (RWA) tokenization platform that converts traditional securities to on-chain tokens, partnered with Wormhole for cross-chain interoperability features. Chainlink also announced that it would provide private transaction capabilities for institutions and enterprises utilizing blockchain technology.
Simultaneously, Flow has become big in the crypto market maker scene for institutions with the rise of BTC and ETH exchange-traded funds (ETFs). It offers liquidity to some of the biggest ETFs in the market, including the iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC). A quarterly financial report mentioned that Flow traded over $500 million worth of crypto assets in the second quarter of 2024.
