The digital security exchange Archax and the DeFi Algorand Protocol have partnered to build a new line of products to bridge the gap between centralized and decentralized funding.
Archax and Algorand will work together to bring “innovative smart financial products” to market, which will include stable coins with smart contracts and liquid alternatives: Mutual funds or Exchange Traded Funds (ETFs) that are intended to enable investors to diversify.
Algorand, who recently updated their scalable smart contracts for DeFi and DApp solutions, will build the products and Archax, one of the first exchanges to receive an operating license from the UK Financial Conduct Authority is included for marketing.
In a statement on Aug. 27, Archax CEO Graham Rodford said the partnership would be one of many to achieve institutional adoption.
“We’re a blockchain agnostic marketplace, but we want to work with leading providers to deliver the next wave of innovative regulated financial products,” said Rodford.
“The DeFi area is emerging and growing incredibly fast, but there are a number of areas that need to be addressed in order to make it institutionally friendly.”
Algorand has been moving towards a more decentralized approach for a while now, claiming to be the first blockchain for evidence of deployment. Last month, ALGO saw a 30% increase after being listed on Coinbase, reaching its highest market cap ever at around $ 560 million on August 13.