Ostium revamps backend to tap off‑chain liquidity including Jump

On Tuesday, Ostium overhauled its backend, launching a real‑time decentralized execution layer that routes on‑chain perpetuals order flow to off‑chain institutional hedging partners, including Jump. The platform said traders remain fully self‑custodial and retain on‑chain settlement and wallet control.

Ostium previously used a public liquidity pool that both priced trades and absorbed net directional risk. The company said that arrangement limited scale, execution quality and the platform’s capacity for open interest. Under the new design, institutional participants and prime brokers take directional exposures so the on‑chain layer can concentrate on execution and routing to deeper off‑chain liquidity across equities, foreign exchange, commodities and indices.

The firm built a translation layer that links smart contracts to institutional messaging protocols and aims for sub‑100‑millisecond latency on each step. Ostium converted its on‑chain public liquidity pool into an intraday lending buffer that interacts with a separate capital pool. That second pool hedges net exposures off‑chain through a network of institutional counterparties, which the company said increases available open interest and more closely matches the depth of underlying markets.

Marco Antonio Ribeiro, co‑founder and CTO, described the infrastructure as “a translation layer between smart contracts and institutional‑grade messaging protocols, with sub‑100‑millisecond latency across every step.” Kaledora Kiernan‑Linn, co‑founder and CEO, compared the upgrade to the role stablecoins played for dollar access, saying the system now “extends the reach of the world’s most liquid global markets to anyone with a wallet.”

Ostium named Jump among its hedging partners and said other prime brokers and “major institutions” will provide off‑chain liquidity. The company did not disclose all counterparties. Ostium reiterated that pricing and hedging flow to off‑chain venues while settlement and wallet custody remain with users.

Founded by Kiernan‑Linn and Ribeiro, Ostium offers leveraged trading of traditional assets directly via non‑custodial crypto wallets. The platform has processed more than $50 billion in cumulative volume across over 26,000 traders. Ostium has raised $27.8 million to date, including a $20 million Series A co‑led by General Catalyst and Jump Crypto, disclosed in December.

Ostium described the new architecture as a decentralized execution layer that routes on‑chain orders to venues where those assets already trade at scale and provides on‑chain settlement without recreating off‑chain order books on chain.