Farewell Token Bridges and Wrapped Assets, Prime Protocol Says

The protocol will initially launch on Moonbeam, Ethereum, Arbitrum and Avalanche with plans to expand in the future


Orla/Shutterstock modified by Blockworks


Prime Protocol launched on Moonbeam, Ethereum, Arbitrum and Avalanche today. It offers a cross-chain prime brokerage that seeks to eliminate the need to use token bridges, swaps or wrapped assets.

The protocol uses Axelar’s General Message Passing for interchain communication, and allows users to cross-margin their entire portfolio and borrow against all of their on-chain assets through one protocol.

Colton Conley, the project’s founder, told Blockworks that existing blockchains operate as separate islands. He noted that this can be quite capital inefficient when an investor has their on-chain portfolio spread across multiple blockchains, L1s and L2s.

“Right now the crypto ecosystem is fractionalized and it’s going to be hard to get mass adoption, especially for the kind of end-user who doesn’t want to worry about which underlying chain they are using,” Conley said. “You need a way to provide infrastructure for that user to have a seamless experience.”

Prime resolves this issue by allowing users to get instant liquidity on chain, regardless of where collateral has been locked up, according to Colney.

Any time a deposit is made, Axelar will send a message and record that deposit on Moonbeam. When a user wants to withdraw or borrow, they can request that with any chain supported by Prime protocol. Axelar then facilitates the message and distributes the tokens to the user’s chain of choice.

“By using cross-chain messaging, we keep track of your account all in one place so we don’t have to go and ping every chain you’ve deposited on before to provide you liquidity,” he said. “We have liquidity pools set up on every blockchain. So the tokens are available for you, regardless of where you’re at.”

The tokens available at launch on each blockchain include: 

  • ETH assets: ETH, USDC, USDC 
  • GLMR assets: GLMR, USDC, DOT, USDT
  • AVAX assets: ETH.e, USDC, USDT
  • ARB assets: USDC, ETH

Although Prime Protocol will only make a handful of tokens available on each chain at the initial launch, Conley stated that there are plans to include a large variety of collateral in the future.

“If anybody is aggregating liquidity or also working in this space, I would love to collaborate with any of those protocols. Wherever there is scope for collaboration with those kinds of players, I’m absolutely looking forward to it,” Conley said.

Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


    upcoming event

    MON - WED, MARCH 18 - 20, 2024

    Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

    upcoming event

    MON - WED, SEPT. 11 - 13, 2023

    2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

    recent research

    Sequencers: The Key to The Rollup Investment Thesis


    Sequencers are one of the most explicit mechanisms in crypto for creating sustainable DAO-controlled revenue.



    The SEC takes on the two biggest players in crypto within 24 hours


    The SEC just sued Binance over alleged securities violations — now, the agency is coming for top US crypto exchange Coinbase


    Binance’s ability to handle large outflows is once again tested as the market reckons with a fresh set of SEC allegations


    Cboe Digital has CFTC permission to provide clearing services for margin trade on crypto futures at a time when regulators are closing in


    The former part owner of the Minnesota Vikings misled a number of banks to process hundreds of millions of dollars of illicit crypto transactions


    “We do not want to be regulated ever,” the SEC quotes an unnamed Binance CCO in lawsuit