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HomeCryptoAlgorandHex Trust Expands Custody Partnership with Algorand Foundation to Include Institutional Staking

Hex Trust Expands Custody Partnership with Algorand Foundation to Include Institutional Staking

Hex Trust expands its partnership with the Algorand Foundation to support institutional staking, combining regulated custody and staking services under one platform for enterprise adoption.

Hex Trust has formally expanded its collaboration with the Algorand Foundation, deepening its role as a key infrastructure provider for the ecosystem. This renewed partnership now includes support for Algorand staking rewards through Hex Trust’s regulated custody and staking platform. Institutions can securely participate in ALGO staking while retaining full compliance with global financial regulations. By offering both custody and staking within one integrated system, Hex Trust simplifies access to Algorand’s governance and yield opportunities.

This move builds on an earlier relationship established in 2021, when Hex Trust began safeguarding the Algorand Foundation’s digital assets. The renewed agreement extends beyond safekeeping to include active participation in Algorand’s Pure Proof-of-Stake consensus through staking pools. Institutions that previously avoided staking due to regulatory and operational concerns now have a reliable path forward.

Why Institutional Staking Matters

Staking allows users to contribute to a blockchain’s consensus process and earn rewards for helping secure the network. On Algorand, this is particularly important. The network uses a Pure Proof-of-Stake (PPoS) consensus model, where ALGO holders participate in selecting new blocks and validating transactions. Greater staking participation leads to a more decentralized and secure network.

However, many institutions remain hesitant to engage in staking directly. They often face barriers like custody risk, unclear compliance requirements, and operational complexity. Hex Trust addresses these challenges by providing access to Algorand’s staking pools through a secure, regulated platform. This model keeps assets under institutional-grade custody while allowing clients to earn staking rewards and contribute to on-chain governance.

The result is a framework where institutions can meet compliance standards, reduce counterparty risks, and still capture yield. This will likely support higher ALGO lock-up rates and long-term network participation from asset managers, hedge funds, and treasuries.

About the Algorand Foundation

The Algorand Foundation is a non-profit organization based in Singapore that supports the development and adoption of the Algorand blockchain. Its mission is to foster a borderless, inclusive, and transparent global economy by providing resources to developers, funding strategic initiatives, and maintaining decentralized governance frameworks.

The Foundation plays a central role in advancing core infrastructure, managing staking rewards, and guiding the technical evolution of the Algorand protocol. It supports a wide range of applications, from decentralized finance (DeFi) and tokenized assets to sustainability initiatives and real-world use cases.

Through grant programs, accelerator funding, and governance participation, the Algorand Foundation ensures the ecosystem remains open, secure, and scalable for builders and institutions alike.

Secure Custody Meets Scalable Staking

Hex Trust remains one of the few digital asset custodians with licenses across multiple regulatory environments. The firm holds approvals in Hong Kong, Singapore, Dubai, and Italy. This regulatory footprint gives clients confidence that digital assets, including ALGO and Algorand Standard Assets (ASAs), are held within a compliant structure.

The Algorand Foundation has again allocated a custody mandate to Hex Trust, reaffirming its trust in the platform’s secure storage and access controls. Beyond custody, Hex Trust’s platform now supports seamless staking operations. Clients can delegate ALGO without needing to move assets off-platform or manage validator infrastructure themselves.

This integrated approach also enhances reporting and transparency. Institutions gain access to full audit trails and reporting tools tailored to meet regulatory and fiduciary obligations. It provides a consistent experience across jurisdictions, streamlining how global firms engage with the Algorand network.

Expanding the Scope of Participation

Hex Trust’s support for institutional staking arrives at a key moment for Algorand. The network has seen renewed interest from builders and developers focused on tokenized assets, stablecoins, and real-world applications. Projects like Folks Finance and Lofty have leveraged Algorand’s fast finality, low costs, and compliance-first approach to build robust applications.

By making staking accessible through regulated infrastructure, Hex Trust lowers entry barriers for financial firms exploring participation. This is especially relevant for asset managers looking to incorporate ALGO into diversified crypto strategies. Holding yield-generating assets under custody, while avoiding operational friction, aligns well with institutional mandates around capital efficiency and risk controls.

Moreover, Hex Trust’s multi-network capabilities allow institutions to manage a diversified staking portfolio from one place. In addition to Algorand, it supports staking for Ethereum, Polkadot, Cosmos, Stacks, and TON. Algorand now benefits from being included in a growing basket of Proof-of-Stake ecosystems trusted by regulated finance.

Long-Term Alignment and Institutional Confidence

The expansion of Hex Trust’s services to include Algorand staking is more than a feature upgrade—it reflects strategic alignment between two institutions building for the long haul. The Algorand Foundation’s continued custody allocation and investment in Hex Trust signals deep trust in the platform’s security, compliance, and infrastructure capabilities. This partnership enables Algorand to meet the rising demands of institutional stakeholders while maintaining the network’s core focus on transparency, performance, and compliance.

By delivering a regulated pathway for staking and governance participation, Hex Trust gives institutional clients the tools they need to operate with confidence. The integrated model—combining secure custody, staking, and execution—removes friction and simplifies reporting obligations across global markets. This structure helps asset managers, hedge funds, and enterprise participants scale their engagement with Algorand without compromising on risk management or regulatory obligations.

The relationship also aligns with broader industry shifts. Institutions increasingly seek unified solutions that combine custody, yield generation, and compliance in a single platform. Hex Trust’s role across multiple Proof-of-Stake ecosystems positions Algorand alongside Ethereum, Polkadot, and Cosmos in institutional strategies. As staking adoption grows, this trusted infrastructure will enable more capital to flow into networks that support scalable, compliant participation.

Together, Hex Trust and the Algorand Foundation are helping shape the standards for institutional blockchain involvement. Their partnership supports the continued growth of Algorand’s ecosystem by making it easier for regulated firms to contribute to its security, decentralization, and governance—setting the foundation for long-term ecosystem sustainability.

*Disclaimer: News content provided by Genfinity is intended solely for informational purposes. While we strive to deliver accurate and up-to-date information, we do not offer financial or legal advice of any kind. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial or legal decisions. Genfinity disclaims any responsibility for actions taken based on the information presented in our articles. Our commitment is to share knowledge, foster discussion, and contribute to a better understanding of the topics covered in our articles. We advise our readers to exercise caution and diligence when seeking information or making decisions based on the content we provide.

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