It has been reported that Archax and Algorand will work together to release “innovative smart financial products” including stablecoins using smart contracts and liquid alternatives, mutual funds, or exchange-traded funds (ETFs) that aim to provide investors with diversification.
However, Algorand, which recently upgraded its scalable smart contracts for DeFi and DApp solutions, will build the products and Archax, one of the first exchanges to obtain an operational license from the UK’s Financial Conduct Authority, will list them for trading.
We are pleased to be partnering with leading blockchain provider @Algorand. Together we’ll be creating new, innovative, smart financial products that will trade on the Archax exchange. Read our press release here: https://t.co/3yAwDfaSD3 pic.twitter.com/HDapImtRnI — Archax (@ArchaxEx) August 27, 2020
Graham Rodford, the CEO of Archax, said that the partnership would be one of many to help bring about institutional adoption.
“We are a blockchain agnostic marketplace, but keen to work with leading providers to deliver the next wave of ground-breaking regulated financial products. The DeFi space is nascent and growing incredibly fast, but there are a number of areas that need to be solved to make it institutionally friendly.”
Today, @ArchaxEx, who recently became the first @TheFCA regulated #exchange & custodian, announced they will be leveraging Algorand's new smart contract capabilities to build innovative financial products that will revolutionize the industry. Read more: https://t.co/gcnW6BQSdA pic.twitter.com/0x9tNLnL3j — Algorand (@Algorand) August 27, 2020
Thus, Algorand has been moving towards a more decentralized approach for some time and claims to be the first proof-of-stake blockchain.