Coinbase-Backed Crypto Bridge Router Protocol to Shut Down

Router Protocol, a cross-chain infrastructure project backed by Coinbase Ventures, will shut down its remaining operations by September 30. The decision comes after the team failed to find a buyer, licensing deal, or sustainable business model for their protocol.

The economics of cross-chain infrastructure were cited as a major challenge, with bridge fees compressing and operating costs remaining largely fixed. Router Protocol's usage has declined significantly, with DefiLlama showing only $677 in bridge volume over the past 24 hours on September 7.

Despite raising over $4 million from investors including Coinbase Ventures in 2021, Router Protocol was unable to sustain its operations. The project had shifted resources towards its Open Graph Architecture last year and has now decided to open-source selected components of its technology.