Current Unveils New Partnership with Acala ahead of DeFi Launch on Polkadot
Mobile banking app Current just revealed that it will be partnering up with Acala, a decentralized finance (DeFi) avenue founded on the Polkadot (DOT) blockchain.
Current, which is headquartered in New York, was established with the sole aim of offering Americans services often neglected by ordinary banks.
When making the announcement, Current stated that there had not been such a collaboration in the past.
It means the partnership would mark the first hybrid finance (HyFi), bringing together traditional and decentralized financial apps.
Acala would, thus, be their all-inclusive DeFi network, which provides a blockchain avenue acquired by Polkadot.
As a package of cross-chain financial programs, the new HyFi will enable Acala users to trade, get staking derivatives, initiate self-serviced loans, sign up to become liquidity providers and be eligible for high interest APY on their digital assets.
Current will be operating its own infrastructure. However, it will offer support on the active validator set.
This collaboration with Acala aligns with Current’s customized banking system, Current Core.
The idea behind launching this platform was to fill the gap in closed-loop fiat currencies. This partnership should be able to accelerate expansion of HyFi infrastructure.
Experts have high expectations that the Current Core platform will be able to offer better stability, facilitate speedy transactions and provide cost efficiencies.
So far the company has received endorsement from investors like Avenir, Tiger Global, Wellington Management Company, Sapphire Ventures, Elizabeth Street Ventures, EXPA and QED.
Just a few days ago, the Bank of America teamed up with Paxos, which is a settlement network founded on blockchain.
The Bank of America, ranked the second-biggest in the US, has been carrying out internal transactions by itself for a couple of months now. If it receives the green light to serve as a clearing agency, it will be allowed to provide services to clients as well.