Multicoin Capital invests in Wormhole to improve cryptocurrency interoperability.

Multicoin Capital is a famous venture capital company. blockchain and Crypto Investments said they participated as co-investors in the $225 million funding round of Wormhole, a key player in the multichain space. The funding round was completed late last year, but was officially announced coinciding with the launch of Wormhole’s native token, W token.

Wormhole is widely known as a full-stack interoperability platform that goes beyond simple bridges. It serves as a development platform that allows a variety of applications across a variety of categories to leverage its capabilities. This includes multichain decentralized finance (DeFi) protocols and applications such as Aave, Circle USDC, Hashflow, Pike, and Magpie, as well as multichain governance solutions such as Uniswap. Wormhole also supports token bridges, multichain oracle feeds, in-wallet bridging, multichain non-fungible tokens (NFTs), and more.

The variety of applications built on top of Wormhole is a major factor that excites Multicoin Capital. Despite its early stages, Wormhole has already facilitated the connection of over $41 billion in assets. This achievement, combined with support for nearly 30 different chains, positions Wormhole as a very powerful and versatile bridging solution. The platform is compatible with the major Ethereum Virtual Machine (EVM) chains as well as Near, Move-based chains, and Solana.

Wormhole’s commitment to providing a great user experience (UX) is evident in its products. One important use case is asset pinning facilitated through a frontend like Portal. Additionally, Wormhole Connect, a front-end widget developed by Wormhole, simplifies deposit and withdrawal authorizations for any asset on any chain. This feature allows derivatives decentralized exchanges (DEXs) like Drift to offer a UX comparable to centralized exchanges (CEXs) like Binance, OKX, Bybit, and Coinbase International. Users can easily collateralize any asset to Drift, regardless of the chain on which the asset originates. This frictionless, cross-chain UX sets Wormhole apart in the industry.

Recently, Wormhole introduced Native Token Transfer (NTT), a framework that allows tokens to move seamlessly between chains using a burn and mint mechanism instead of a traditional locking mechanism. This innovation reduces gas costs, reduces latency, and increases security for end users. In particular, NTT-backed tokens integrate seamlessly with Wormhole Connect so users and application developers don’t have to worry about the underlying mechanisms.

Another notable feature of Wormhole is its support for Circle’s Cross-Chain Transfer Protocol (CCTP), allowing you to move USDC between chains. By supporting asset pegging, native token transfer, and CCTP, Wormhole covers all three configurations for cross-chain asset movement. A single software development kit (SDK) allows developers to easily integrate and support all asset configurations.

Going forward, Wormhole is committed to improving the verification process for bridging systems. Historically, bridging systems have relied on varying levels of trust to facilitate multichain verification. But wormholes take a different approach. The platform recently announced that it is focusing on zero-knowledge (ZK) verification technology, with the goal of removing the need for trust in the verification process. This move will bring numerous benefits, including improved UX, developer experience (DevEx), and overall security.

Multicoin Capital expressed its respect for the Wormhole team and praised their meticulous approach in building what they believe is a leading asset bridge and multichain development platform. The company is confident in Wormhole’s potential and is grateful for the opportunity to support the team’s vision.

In conclusion, Multicoin Capital’s investment in Wormhole signals the growing importance of secure, flexible interoperability platforms in the cryptocurrency industry. Wormhole’s diverse applications, broad chain support, commitment to UX, and adoption of ZK verification technology make the platform well-positioned to drive the multichain revolution.

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