A $50 million fund has been established to support startups utilizing the Wormhole cross-chain messaging protocol, aiming to facilitate seamless asset transfers across different blockchains. The fund, managed by Borderless Capital, has garnered support from more than 20 prominent blockchain development teams and venture capital firms, including Circle, Polygon Ventures, Solana Foundation, and Jump Crypto.
The primary focus of the fund is to assist startups in creating innovative applications, infrastructure, and tools that span multiple ecosystems. It promotes the notion that a diversified blockchain landscape is essential for resolving users’ challenges, thus positioning itself as “anti-maxi.”
David Garcia, CEO and managing partner of Borderless Capital, expressed confidence in the fund’s ability to contribute to the growth of the Web3 economy and attract new users to blockchain applications. He emphasized the goal of empowering builders to overcome the constraints of individual ecosystems, thereby unlocking the full potential of blockchain protocols.
Wormhole, a cross-chain messaging protocol, serves as a vital link between diverse blockchain networks, facilitating seamless communication and asset bridging. By utilizing Wormhole, users can transfer assets like Ether from the Ethereum network to the Solana network effortlessly. The protocol boasts connectivity with over 20 different networks, establishing itself as a versatile solution.
While Wormhole has expanded its network of partners in recent months, it has also faced security concerns in the past. In February 2022, its Solana bridge fell victim to a hacking incident, resulting in $321 million in losses. However, developers promptly addressed the vulnerabilities and reimbursed all affected users.
In addition to Wormhole, various other cross-chain messaging protocols, such as LayerZero, Celer, and deBridge, have emerged to foster interoperability between blockchain networks.
Wormhole’s track record includes being selected as the official bridging protocol for cross-chain governance between Ethereum and BNB Network by crypto exchange Uniswap. Furthermore, its integration with Circle’s Cross-Chain Transfer Protocol on April 26 enabled simpler transfers of USD Coin from Ethereum to Avalanche.
The launch of the $50 million fund signifies a significant step towards increasing the adoption of Wormhole and strengthening cross-chain communication capabilities. Startups now have a valuable resource to drive innovation and address the challenges associated with multiple blockchain ecosystems. With a growing network of supporters, Wormhole aims to pave the way for blockchain applications and protocols to realize their full potential in the Web3 economy.