As the decentralized finance (DeFi) market is booming, digital exchange Archax has inked a partnership deal with blockchain developer Algorand to build new innovative smart financial products.

This came only a week after Archax received authorization from the United Kingdom’s Financial Conduct Authority (FCA) to legally operate as a digital securities exchange and custodian in the country.

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However, the exchange is yet to start its operations. The press release shared with Finance Magnates also detailed that the products developed by the two will be traded on the Archax exchange.

“We are a blockchain agnostic marketplace, but keen to work with leading providers to deliver the next wave of ground-breaking regulated financial products,” Archax CEO, Graham Rodford said in a statement.

“Algorand fits that bill perfectly, and we are now working with them on a number of challenger products – such as smart stablecoins and liquid alternative instruments, as well as those which will revolutionize the lending/borrowing/staking space.”

He also highlighted that the new products will bridge the gap between ‘centralized and decentralized finance worlds’.

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Algorand has developed a so-called next-generation blockchain on the proof-of-stake consensus that overcomes the challenge with scaling and speed. Leading stablecoins, including Tether and USDC, also migrated a significant portion of the tokens to Algorand.

“With their ability to leverage technology that is purpose-built for DeFi, we believe that Archax will be one of the leading digital asset venues in the world,” said W. Sean Ford, COO of Algorand. 

“By bringing together Algorand’s proven performance, along with Archax’s unique regulated status and institutional experience, we are looking forward to delivering powerful products that will revolutionize the way global financial markets traditionally operate in a new, frictionless economy.”