The partnership will provide institutional investors with secure access to decentralized structured products, starting with Decentralized Options Vaults on the Algorand blockchain.
Digital asset custodian Hex Trust has partnered with AlgoRai Finance, a Singapore-based decentralized structured products platform, to give institutional investors access to AlgoRai’s investment and risk-based solutions.
The partnership will allow institutional investors to access decentralized options vaults (DOVs) on the Algorand blockchain, which monetize the high volatility of the underlying asset and inject yield into DeFi through the payment of option premiums with the added yield from Algorand governance rewards, Hex said in an announcement on Wednesday.
Hex Trust was among the backers in the recent the $1.7 million seed round for AlgoRai, which was developed in partnership with Algo Foundry. Algorand Foundation, Arcane Group, Arrington Capital, BCW Group, Borderless Capital, GSR Markets, Mozaik Capital, Optio Capital, TDX Strategies, and Undercurrent Capital also participated in the funding round.
The DOVs are the first of a range of products that AlgoRai Finance plans to offer to cater to different risk profiles, market expectations, and asset classes. Institutional investors will be able to access these DOVs within selected regulatory jurisdictions from the safety of their custody accounts with Hex Trust.
Read more: MAS' Longest-Serving Chief Ravi Menon to Step Down
“Institutional investors are increasingly looking for access to decentralized structured products as their trust in centralized and opaque digital asset services decreases,” Giorgia Pellizzari, head of custody at Hex Trust, said.
Hex Trust Group operates a proprietary institutional-grade platform that delivers solutions for digital asset protocols, foundations, financial institutions, and the Web3 ecosystem. It has offices in Singapore, Hong Kong, Dubai, Italy, and Vietnam.
The world of Web3 can be quite a whirlwind. Whether it’s crypto news in Singapore, South East Asia or even across the globe, we understand how busy the industry is keeping you, so we kindly send out three newsletters each week:
- BlockBeat for a wrap-up of the week’s digital assets news
- Blockhead Brief for weekend happenings as well as what to look forward to in the week ahead
- Business Bulletin for macroeconomic updates and industry developments.
To avoid FOMO and access member-only features, click here to subscribe for FREE.