The post Flow Traders Embraces DeFi with EigenLayer and Cap Integration appeared on BitcoinEthereumNews.com. Luisa Crawford Nov 26, 2025 04:17 Flow Traders, a major liquidity provider, integrates with EigenLayer’s Cap, marking a significant step in bridging traditional finance with DeFi through innovative cryptoeconomic mechanisms. Flow Traders, one of the world’s largest liquidity providers and ETF market makers, has ventured into decentralized finance (DeFi) by integrating with the EigenLayer platform through Cap, a stablecoin protocol. This strategic move signifies a notable advancement in the collaboration between traditional finance (TradFi) and DeFi ecosystems, according to EigenCloud. Innovative Financial Infrastructure Cap operates as an EigenLayer Autonomous Verifiable Service (AVS), offering a protected private credit marketplace that leverages EigenLayer’s slashing, redistribution, and unique stake features. This infrastructure enables Flow Traders to access onchain liquidity, ensuring robust risk management and transparency. EigenLayer’s restaking infrastructure underpins this setup, transforming traditional financial standards into programmable, cryptoeconomic guarantees. Institutional Participation in DeFi The integration of Flow Traders highlights the increasing interest of institutional players in DeFi. Cap’s deployment showcases EigenLayer’s potential as a foundational layer for institutional capital flows onchain. By utilizing cryptoeconomic incentives, Cap offers credible financial guarantees that surpass traditional legal frameworks, making it an attractive option for institutional investors. Mechanisms of Integration Three core EigenLayer primitives—slashing, redistribution, and unique stake—play crucial roles in this integration: Slashing: This ensures accountability by penalizing operators who fail to meet their commitments, thereby enforcing economic responsibility. Redistribution: Slashed funds are repurposed as protocol-level insurance, protecting users without relying on centralized providers. Unique Stake: This isolates risk by allowing operators to allocate specific portions of their delegated stake to distinct tasks, ensuring targeted security for each credit position. Creating a New Financial Ecosystem The collaboration brings together several key players: EigenLayer: Provides the restaking infrastructure that supports the credit market. Cap: Develops the credit marketplace infrastructure… The post Flow Traders Embraces DeFi with EigenLayer and Cap Integration appeared on BitcoinEthereumNews.com. Luisa Crawford Nov 26, 2025 04:17 Flow Traders, a major liquidity provider, integrates with EigenLayer’s Cap, marking a significant step in bridging traditional finance with DeFi through innovative cryptoeconomic mechanisms. Flow Traders, one of the world’s largest liquidity providers and ETF market makers, has ventured into decentralized finance (DeFi) by integrating with the EigenLayer platform through Cap, a stablecoin protocol. This strategic move signifies a notable advancement in the collaboration between traditional finance (TradFi) and DeFi ecosystems, according to EigenCloud. Innovative Financial Infrastructure Cap operates as an EigenLayer Autonomous Verifiable Service (AVS), offering a protected private credit marketplace that leverages EigenLayer’s slashing, redistribution, and unique stake features. This infrastructure enables Flow Traders to access onchain liquidity, ensuring robust risk management and transparency. EigenLayer’s restaking infrastructure underpins this setup, transforming traditional financial standards into programmable, cryptoeconomic guarantees. Institutional Participation in DeFi The integration of Flow Traders highlights the increasing interest of institutional players in DeFi. Cap’s deployment showcases EigenLayer’s potential as a foundational layer for institutional capital flows onchain. By utilizing cryptoeconomic incentives, Cap offers credible financial guarantees that surpass traditional legal frameworks, making it an attractive option for institutional investors. Mechanisms of Integration Three core EigenLayer primitives—slashing, redistribution, and unique stake—play crucial roles in this integration: Slashing: This ensures accountability by penalizing operators who fail to meet their commitments, thereby enforcing economic responsibility. Redistribution: Slashed funds are repurposed as protocol-level insurance, protecting users without relying on centralized providers. Unique Stake: This isolates risk by allowing operators to allocate specific portions of their delegated stake to distinct tasks, ensuring targeted security for each credit position. Creating a New Financial Ecosystem The collaboration brings together several key players: EigenLayer: Provides the restaking infrastructure that supports the credit market. Cap: Develops the credit marketplace infrastructure…

                                                                               BitGo’s move creates further competition in a burgeoning European crypto market that is expected to generate $26 billion revenue this year, according to one estimate.                     BitGo, a digital asset infrastructure company with more than $100 billion in assets under custody, has received an extension of its license from Germany’s Federal Financial Supervisory Authority (BaFin), enabling it to offer crypto services to European investors. The company said its local subsidiary, BitGo Europe, can now provide custody, staking, transfer, and trading services. Institutional clients will also have access to an over-the-counter (OTC) trading desk and multiple liquidity venues.The extension builds on BitGo’s previous Markets-in-Crypto-Assets (MiCA) license, also issued by BaFIN, and adds trading to the existing custody, transfer and staking services. BitGo acquired its initial MiCA license in May 2025, which allowed it to offer certain services to traditional institutions and crypto native companies in the European Union.Read more