Citadel Securities Partners with LayerZero
What happened
Citadel Securities has teamed up with blockchain interoperability protocol LayerZero on a new initiative. The partnership signals a push by the high-frequency trading firm to build infrastructure for blockchain-based trading. The collaboration focuses on creating interoperable venues that can provide both liquidity and regulatory transparency.
Why it matters
- Citadel Securities founder Ken Griffin, once a vocal crypto skeptic who called it a "jihadist call" against the U.S. dollar, has shifted his stance, stating he regrets not entering the market sooner and now sees the need to provide liquidity for digital assets. - This partnership is not Citadel Securities' first entry into digital assets; the firm previously co-founded EDX Markets, a crypto exchange for institutional investors, alongside Fidelity and Charles Schwab. - LayerZero Labs, the entity behind the protocol, is a heavily-backed Web3 infrastructure firm, having raised over $250 million and achieving a $3 billion valuation with investors like Andreessen Horowitz, Sequoia Capital, and Circle Ventures. - The collaboration is centered on a new blockchain called "Zero," which aims to solve scalability issues using zero-knowledge proofs to achieve a claimed 2 million transactions per second—significantly outperforming existing networks like Ethereum and Solana. - As part of the initiative, Citadel Securities has made a strategic investment in LayerZero's native token, ZRO, a move considered uncommon for the trading firm which typically invests in companies rather than directly in tokens. - Other major financial institutions are also collaborating on the Zero blockchain, including The Depository Trust & Clearing Corporation (DTCC), Intercontinental Exchange (ICE), and ARK Invest, with ARK's CEO Cathie Wood joining the project's advisory board. - LayerZero's technology functions as a messaging protocol that enables different blockchains to communicate directly, utilizing "Ultra Light Nodes" to reduce the high costs and low throughput associated with traditional cross-chain bridges.
Key numbers
- LayerZero Labs, the entity behind the protocol, is a heavily-backed Web3 infrastructure firm, having raised over $250 million and achieving a $3 billion valuation with investors like Andreessen Horowitz, Sequoia Capital, and Circle Ventures.
- The collaboration is centered on a new blockchain called "Zero," which aims to solve scalability issues using zero-knowledge proofs to achieve a claimed 2 million transactions per second—significantly outperforming existing networks like Ethereum and Solana.
What happens next
- The collaboration is centered on a new blockchain called "Zero," which aims to solve scalability issues using zero-knowledge proofs to achieve a claimed 2 million transactions per second—significantly outperforming existing networks like Ethereum and Solana.
Quick answers
What happened in Citadel Securities Partners with LayerZero?
Citadel Securities has teamed up with blockchain interoperability protocol LayerZero on a new initiative. The partnership signals a push by the high-frequency trading firm to build infrastructure for blockchain-based trading. The collaboration focuses on creating interoperable venues that can provide both liquidity and regulatory transparency.
Why does Citadel Securities Partners with LayerZero matter?
Citadel Securities founder Ken Griffin, once a vocal crypto skeptic who called it a "jihadist call" against the U.S. dollar, has shifted his stance, stating he regrets not entering the market sooner and now sees the need to provide liquidity for digital assets. This partnership is not Citadel Securities' first entry into digital assets; the firm previously co-founded EDX Markets, a crypto exchange for institutional investors, alongside Fidelity and Charles Schwab. LayerZero Labs, the entity behind the protocol, is a heavily-backed Web3 infrastructure firm, having raised over $250 million and achieving a $3 billion valuation with investors like Andreessen Horowitz, Sequoia Capital, and Circle Ventures. The collaboration is centered on a new blockchain called "Zero," which aims to solve scalability issues using zero-knowledge proofs to achieve a claimed 2 million transactions per second—significantly outperforming existing networks like Ethereum and Solana. As part of the initiative, Citadel Securities has made a strategic investment in LayerZero's native token, ZRO, a move considered uncommon for the trading firm which typically invests in companies rather than directly in tokens. Other major financial institutions are also collaborating on the Zero blockchain, including The Depository Trust & Clearing Corporation (DTCC), Intercontinental Exchange (ICE), and ARK Invest, with ARK's CEO Cathie Wood joining the project's advisory board. LayerZero's technology functions as a messaging protocol that enables different blockchains to communicate directly, utilizing "Ultra Light Nodes" to reduce the high costs and low throughput associated with traditional cross-chain bridges.
