Strands Technologies Ltd. has reportedly reached a milestone of over $6 billion in tokenized notional by integrating Derive.xyz, a decentralized protocol for on-chain derivatives.
This partnership comes at a time when trust in the space has been shaken by the past collapse and “continued aftermath of major players like Celsius Network, FTX, and Three Arrows Capital, and represents a broader shift in the market toward more transparent and sustainable yield strategies.”
Derive.xyz’s ability to tokenize institutional funds and bring traditional financial assets “onto the blockchain marks a pivotal moment in the convergence of traditional finance (TradFi) and DeFi.”
This integration allows Strands’ institutional clients to “tap into on-chain perpetual futures and options, powered by Ethereum Layer 2, offering them transparent, secure, and highly composable execution solutions.”
The collab with Derive.xyz is designed to unlock opportunities for institutional investors and hedge funds while “offering a bridge between the regulated, traditional financial infrastructure and the decentralized finance ecosystem.”
Tim Gorham, CEO of Strands said:
“Partnering with Derive.xyz is a pivotal step in expanding what’s possible for institutional traders. As we pass $6 billion in total notional tokenized assets, integrating onchain perpetuals via Derive’s … protocol gives our clients an edge in strategy execution, while maintaining full transparency and settlement confidence.”
This integration highlights the role of platforms like Derive.xyz, which have processed “over $15.8 billion in total volume and executed over 2.5 million trades, solidifying its leadership in on-chain options.”
As DeFi platforms increasingly align with “institutional-grade infrastructure, the addition of on-chain perpetual futures to Strands’ ecosystem reinforces the convergence of traditional finance and decentralized finance.”
Nick Forster, Founder of Derive.xyz.
“Strands’ focus on institutional-grade infrastructure and efficient execution aligns well with the growing needs of institutional investors in the DeFi space. This partnership marks an important step in bridging the gap between traditional and decentralized finance, expanding access to advanced decentralized derivatives and ensuring a more secure, efficient, and transparent trading environment.”
Dr. Sean Dawson, Head of Research at Derive.xyz, added:
“The integration of tokenized derivatives into the DeFi ecosystem presents new opportunities for execution precision and capital efficiency. Platforms like Strands, with their full-stack approach, will play a key role in shaping the future of decentralized financial products.”
With its approach to tokenized CME futures and the presence of real-world assets (RWAs) in the DeFi space, Strands is “positioning itself at the forefront of the digital asset market, in alignment with projections for a $10 trillion tokenized market by 2030.”
This partnership is said to be the “beginning of the next wave of institutional adoption in DeFi.”
As covered, Derive.xyz (TVL $91.3M, $15.8B trade volume), is described as the decentralized protocol “that creates unique and programmable onchain options, perpetuals, and structured products.”
Co-founded by Nick Forster, Jake Fitzgerald, Mike Spain and Dom Romanowski, it empowers users with “accessible automated strategies to build, grow, and preserve wealth.”
Strands is a multi-asset execution platform designed “for active traders and institutions who want a full-stack solution from Direct Market Access (DMA) execution up to a custom front end with full tokenization capabilities.”