A New Protocol for Digitized Commodities Perpetual Swaps
A cryptocurrency startup called Ostium Labs has recently raised $3.5 million in funding with the goal of combining traditional commodities trading with the world of crypto. The startup, backed by investors such as General Catalyst, LocalGlobe, SIG, and Balaji Srinivasan, is developing a new protocol for digitized commodities perpetual swaps. The co-founders of Ostium Labs, Kaledora Kiernan-Linn and Marco Antonio, aim to create a platform that appeals to both traditional commodities traders seeking transparency and flexibility, as well as crypto-native traders.
Trading Options and Bringing Real-World Assets On-Chain
The initial phase of the protocol will support trading in perpetuals tied to oil, bitcoin, and foreign exchange pairs like the Australian dollar, pound, euro, and yen. Currently, real-world assets make up only a small portion of crypto-related activity. However, investors like Ash Arora from LocalGlobe are eager to see real-world assets migrate on-chain. They believe that tangible assets are due for a technological upgrade in terms of consumer access and transparency.
The Resurgence of Real-World Assets on the Blockchain
According to The Block Research, $1.6 billion has been raised across 188 funding deals for real-world asset projects. In the last two years alone, these firms have received $907 million in investments. Avi Felman from GoldenTree states that settling on crypto rails is more efficient than the traditional system and predicts major launches in the coming months that will change the game. Ostium Labs believes its partnership with Chainlink will set it apart from other companies integrating real-world assets into their blockchains.
Alternative to Crypto Derivatives for Crypto-Native Traders
Crypto-native traders may be seeking alternatives to crypto derivatives due to a stagnation in crypto trading activity. Monthly bitcoin futures volumes have consistently decreased since March, while DEX-based perpetual swap platforms have seen low trading volumes. Ostium Labs aims to offer a new option for these traders with its protocol.
Hot Take: The Future of Real-World Assets on the Blockchain
The integration of real-world assets into the blockchain is gaining momentum, with investors recognizing the potential for increased access and transparency. Ostium Labs’ new protocol for digitized commodities perpetual swaps is an example of this growing trend. By combining traditional commodities trading with the world of crypto, Ostium Labs aims to provide a transparent and flexible alternative for both traditional and crypto-native traders. With the support of investors and strategic partnerships, Ostium Labs has the potential to revolutionize the way real-world assets are traded on-chain.
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