Algorand expands institutional staking with Hex Trust

The Algorand Foundation has expanded its collaboration with Hex Trust, bringing staking rewards to institutional investors.

Algorand (ALGO), a protocol that seeks to solve the proof of staked centralization dilemma via its Pure Proof-of-Stake consensus model, already taps into Hex Trust as a web3 custody provider.

The expanded partnership seeks to bolster decentralization by leveraging the regulated digital asset financial institution’s platform to offer institutional access to Algorand’s staking rewards.

Algorand said in a blog post that Hex Trust’s solution will help strengthen the PPoS blockchain’s infrastructure as the ecosystem grows.

Hex offers institutional-grade web3 custody, regulatory compliance, and security for its customers. By tapping into it, Algorand enhances not only its operational integrity but also supports broader adoption. The platforms first partnered in 2021.

“Hex Trust provides secure access to Algorand’s Staking Pools, empowering institutional clients to engage in on-chain governance and generate rewards without compromising control, security, or compliance,” Algorand Foundation wrote in a blog post.

Algorand’s traction

The partnership with Hex Trust comes a few weeks after Algorand Foundation revealed it was joining forces with Paycode, a leading biometric and offline digital payment provider.

Algorand and Paycode aim to expand blockchain-powered digital asset payments to underserved regions across the world.

“This partnership brings blockchain into direct service of people who need it most,” said Staci Warden, chief executive officer of the Algorand Foundation. “Paycode is already reaching some of the most difficult places to serve. Together, we have the opportunity to make those systems more transparent, efficient, and trusted.”

Recently, the ALGO token surged as the Federal Reserve’s real-time gross settlement system, Fedwire, officially adopted the ISO 20022 standard.

The move allows banks and financial institutions to tap into blockchain platforms for cross-border payments, with key benefits including speed, security and programmable settlements.

Algorand is one of the blockchains already compliant with ISO 20022. Others include XRP, Stellar, Cardano, Quant, and Hedera.