Ostium has launched a decentralised execution layer designed to connect on-chain trading with institutional hedging infrastructure.
Ostium Labs, the developer of the Ostium protocol, has launched a real-time decentralised execution layer designed to hedge directional flows with institutional participants active in traditional markets.
The network of hedging partners includes Jump, alongside prime brokers and other institutions. Ostium positioned the launch as a self-custodial and transparent alternative to the contract-for-difference market, which it described as handling US$10 trillion in monthly volume.
The new architecture differs from decentralised perpetual platforms that typically rebuild order book liquidity from scratch for each asset. Instead, Ostium uses pricing from traditional market venues and participants, which gives users access to some of the most liquid pricing available across major markets.
Under the new structure, a separate capital pool programmatically hedges net exposures off-chain through a network of institutional partners and settles once daily, while the public liquidity pool acts as an intraday lending layer.
Ostium added that users can gain exposure to traditional assets, including commodities, stocks, ETFs, indices, and foreign exchange, while retaining full self-custody and benefiting from instant settlement.
“Programmatically hedging on-chain flow with traditional market participants required building a new kind of infrastructure, a translation layer between smart contracts and institutional-grade messaging protocols,” said Marco Antonio Ribeiro, Co-founder and CTO of Ostium Labs.
“Just as stablecoins extended the reach of the US dollar, Ostium extends the reach of the world’s most liquid global markets to anyone with a wallet,” said Kaledora Kiernan-Linn, Co-founder and CEO of Ostium Labs.
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