Hex Trust, an institutional-grade digital asset custodian, has expanded its business partnership with the Algorand network by launching an Algorand staking service to institutional investors.
The launch of the staking service marks a continued relationship that the two firms started in 2021.
What Does Hex Trust Bring On Board?
This rollout of this staking offering provides institutional customers with the ability to stake Algorand (ALGO) directly from Hex Trust’s trading platform and generate passive yield. Customers’ money is kept in Hex Trust’s cold storage platform and staked using validators run by Algorand’s Proof-of-Stake (PoS) consensus mechanism.
The new service is part of Hex Trust’s wider ‘staking partner initiative’ that collaborates with various institutional-grade staking providers. By capitalizing on Hex Trust’s strong custody solution, called Hex Safe, institutional investors can stake (ALGO), earn rewards while contributing to Algorand’s network security.
The renowned partnership indicates Algorand’s attraction to crypto institutional users due to its network fundamentals that offer advanced decentralization, security, scalability, and performance.
Hex Trust is a regulated digital asset custodian that plays an essential role in linking TradFi and DeFi ecosystems, allowing institutions to interact with staking offerings and various digital assets.
Why Staking Matters to Institutional Investors
Staking is an essential component of DeFi because it allows users to lock up their crypto assets to help maintain the network’s security. In exchange for their assistance, they get compensated in term of rewards, which motivate more users to join in.
Basically, staking develops trust, makes things function effectively, and rewards earned, attracts investors, making the entire ecosystem more robust and attractive.
Institutional staking offerings are a major contributor to the adoption of DeFi and DApps by providing a bridge between TradFi and the decentralized landscape. These offerings provide the confidence, security, and efficiency that institutions demand, developing trust in the DeFi ecosystem.
By engaging in staking through these platforms, institutional investors earn rewards and also proactively secure blockchain networks, supporting their overall strength.
