$300 million fills the hole for Wormhole, explores the most low-key Wall Street giant Jump Trading in crypto VC

After the $320 million hack of the cross-chain protocol Wormhole, Jump Crypto — the crypto investment arm of Jump Trading — intervened in a timely manner to “rescue the market” and replenished 120,000 ETH “out of pocket”. Just one day later, the Wormhole bridge was back online. Jump Trading’s actions prevent a possible domino effect across the Solana DeFi space. Notably, Jump Trading acquired Wormhole development team Certus One last August.

Jump Trading is known as one of the most secretive high-frequency trading firms on Wall Street, and its executive team rarely appears in the public media. But the company has already extended its business tentacles into the crypto space, and is currently an important supporter of the Solana ecosystem. Bittui will take you to the most mysterious and low-key Wall Street giant.

Solana

high frequency trading giant

(Cryptosquare: https://cryptosquare.org/wikiDetail?id=4450&slug=jump_trading)

Over the past few decades, high-frequency traders have been at the vanguard of a wave of change in U.S. financial markets. Using cutting-edge computer technology and regulatory changes, they quickly accumulated huge fortunes by compressing stock margins/commissions and exploiting the price differentials of the same asset in different venues to increase trading efficiency.

Jump Trading, headquartered in Chicago, was founded in 1999 by two former CME floor traders, Bill DiSomma and Paul Gurinas, with the aim of compressing the execution time of financial markets to the shortest possible time. The company quickly grew into a One of the world's largest high-frequency trading firms, active on futures, options and stock exchanges around the world, and a major trader of U.S. Treasury bonds and cryptocurrencies. Jump Trading employs over 1,000 people and has offices in the US, Europe and Asia.

Privately-owned Jump doesn't release its financials, and its founders have been tight-lipped about its operations and historically kept out of the public eye, with only a few job postings and legal disclosures on the company's website. As the company diversifies, the financial giant is likely to become more visible.

online brokerage

Jump Trading executes crypto trades for clients of the popular stock and crypto platform Robinhood. Simply put, Jump pays Robinhood in return for sending its clients’ crypto trades to Jump, who executes those trades. The partnership gives Jump a firm foothold in the online brokerage space.

In the first three quarters of 2021, Jump paid Robinhood the equivalent of 17% of the broker's total revenue, according to SEC filings, meaning Jump spent about $247 million for the right to execute Robinhood orders, Jump is likely to earn more than that.

Ten years of dormancy, expanding the territory of encrypted investment

Jump Capital (Cryptosquare: https://cryptosquare.org/wikiDetail?id=3037&slug=jump_capital) is a venture capital firm affiliated with Jump Trading, headquartered in Chicago, has nearly 10 years of operating history, its partner and crypto Peter Johnson, one of the strategy leaders, revealed that the company has been secretly deploying a crypto strategy for years, saying in an interview with the Financial Times: “Cryptocurrencies are becoming real and adoption is really accelerating”.