• Wintermute Ventures, the investment arm of noted liquidity provider Wintermute, has made a strategic investment in Vertex Protocol, a decentralized exchange (DEX) for spot and derivatives trading of digital assets.
• The duo will work together to provide liquidity services for Vertex’s exchange.
• Decentralized exchange trading volume rose to $133 billion in March 2021 despite increasing regulatory scrutiny.
Wintermute Backs DEX Vertex Protocol in Strategic Investment
Wintermute Ventures, the investment arm of noted liquidity provider Wintermute, has made a strategic investment in Vertex Protocol, a decentralized exchange (DEX) for spot and derivatives trading of digital assets. The amount of the investment wasn’t disclosed but Wintermute will provide liquidity services to the exchange. Additionally, both parties will collaborate to “deepen ties across various business lines”.
Decentralized Exchange Trading Volume on the Rise
Despite increasing regulatory scrutiny in the United States, decentralized exchange trading volume rose to $133 billion in March 2021. Since its April launch on Arbitrum, Vertex Protocol has seen impressive growth with more than $21 million in 24 hour trading volume according to DeFiLlama data.
Tim Wu, Head of Decentralized Finance (DeFi) at Wintermute explained that “Vertex Protocol meets the market’s growing demand for non-custodial trading solutions while also possessing the efficiency of centralized exchanges” and that their “rapid growth reflects this trend”. He added that their robust infrastructure is an ideal fit for large trading firms like them.
Why This Matters
This strategic partnership between Wintermute Ventures and Vertex Protocol not only provides financial support but it also further solidifies decentralized exchanges as an effective alternative to traditional centralized exchanges when it comes to token trading and management.
The increased demand for non-custodial solutions paired with Vertex’s robust infrastructure makes this partnership a great match and opportunity for both companies moving forward. With institutional investors like Wintermute taking such an interest in DEXs it is likely that we will continue seeing such investments being made into this technology over time which could help propel decentralized exchanges into mainstream adoption even further.