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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.
“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.
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