UK exchange Archax teams up with Algorand on DeFi projects

Published at: Aug. 28, 2020

Digital security exchange Archax and DeFi protocol Algorand have formed a partnership to build a new line of products to bridge the gap between centralized, and decentralized, finance.

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.

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 U.K.’s Financial Conduct Authority, will list them for trading.

In an Aug. 27 statement, Archax CEO Graham Rodford said 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,” Rodford said.

“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.”

Algorand has been moving towards a more decentralized approach for some time and claims to be the first proof-of-stake blockchain. Last month ALGO experienced a 30% spike after its listing on Coinbase, and it reached an all-time high market capitalization of roughly $560 million on Aug 13.

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