Founders Fund-backed N1 acquires 01 Exchange to challenge established crypto exchanges

Crypto infrastructure startups have spent years building faster blockchains and better developer tools. N1 is taking a different route. The Founders Fund-backed Layer 1 blockchain has agreed to acquire 01 Exchange, a decentralized derivatives platform that has already processed more than $3 billion in trading volume. The move gives N1 direct control over one of the largest applications built on its network and signals a shift away from relying on outside developers to drive ecosystem growth.

The acquisition brings 01 Exchange’s trading platform, market structure expertise, community, and application layer into N1’s ecosystem. The exchange was originally incubated on N1’s infrastructure and has attracted more than 25,000 users since launch. Financial terms were not disclosed, though the companies said the transaction will be structured entirely in equity and tokens and is expected to close within the next six months.

The deal reflects a broader strategy taking shape across crypto infrastructure. Rather than depending on third-party applications to attract users and liquidity, N1 wants to own the core pieces of its network, from blockchain infrastructure to trading products. The company believes keeping those pieces under one roof will create a tighter connection between product development, liquidity, and network economics.

“01 Exchange has already shown what is possible on N1, and bringing it into the network lets us move faster, deepen liquidity, and deliver a more integrated trading experience”, said Dima Romanov, CEO and co-founder of N1. “With N1 2.0, our next version, we’re expanding that foundation across RFQ markets, vaults, equities, mobile, and other on-chain financial products. We believe vertically integrated networks will define the next generation of exchanges, and N1 is being built to lead that shift.”

Why N1 Is Bringing Its Biggest Trading App In-House

The acquisition comes ahead of the planned launch of N1 2.0, the next major version of the blockchain. The update is expected to introduce request-for-quote markets, vaults, equities, deeper liquidity, and additional on-chain financial products. N1 plans to extend the platform beyond desktop trading with native iOS and Android applications that connect users directly to its trading infrastructure.

For existing 01 Exchange users, the transition is expected to be largely invisible. Users will not need to migrate their assets, and the exchange will continue operating under the N1 brand. Points earned before the launch of N1 will remain valid, with the updated version expected to roll out without requiring customer action.

The acquisition reflects a growing trend across crypto, where blockchain developers are taking greater control over the applications running on their networks instead of leaving ecosystem growth entirely to outside builders. The approach gives blockchain teams more influence over user experience, liquidity, and product direction at a time when competition among Layer 1 networks continues to intensify.

Founded to support high-performance crypto applications, N1 positions itself as a Layer 1 blockchain built for low-latency trading and high throughput. Its architecture isolates each application into its own execution environment, allowing apps to operate independently without competing for shared network resources. With 01 Exchange becoming part of the company, N1 is betting that closer integration between infrastructure and applications will help it stand out in an increasingly crowded blockchain market.