A group of Chicago-based crypto trading shops is coming together to connect more closely with Open Finance (DeFi) projects.
Volt Capital, Jump Trading, CMT Trading and DRW Trading launched today the Chicago DeFi Alliance (CDA. The organization, announced late Tuesday in a blog post, seeks to bring together the Chicago-based trading firms and DeFi projects from the world.
Inaugural members of the alliance include TD Ameritrade, DV Trading, Arca, dYdX, and Compound.
The alliance aims to help DeFi projects understand the Chicago trading ecosystem, a major financial hub famous for its derivatives market. As DeFi projects look to bootstrap liquidity and onboard professional traders, CDA provides them a platform to communicate with trading firms, liquidity providers, and over-the-counter desks.
“I decided to join the CDA because I see a significant knowledge gap between the DeFi startups I talk with on a daily basis, and my colleagues at Jump Trading and other trading firms in the industry. My hope is that the CDA can help close that gap by helping DeFi startups understand where there are (and are not) real potential opportunities to work with trading firms and involve them in the DeFi ecosystem,” said Jump Capital head of fintech investing Peter Johnson.
Each DeFi startup will be paired with a mentor and go through a four-to-six-week program to learn about trading firms’ needs in DeFi. The end goal, according to Volt Capital general partner Imran Khan, is for these startups to have a clear idea of what products they could build and the resources they might need to attract firms from the trading realm.
“What we want out of this is at the end of, say, four weeks is we want startups to be better at understanding what types of products they’re building,