Banking App Current Teams Up With Acala for DeFi Debut on Polkadot

19 May 2021, 20:50 GMT+0000
Updated by Ana Alexandre
19 May 2021, 20:50 GMT+0000
In Brief
  • Banking app Current has announced a team-up with Acala.
  • Acala is an Ethereum-compatable platform for financial apps to use smart contracts on Polkadot.
  • Current's investors include Tiger Global, Sapphire Ventures and Foundation Capital.
  • promo

Banking app Current has announced a collaboration with Acala, a decentralized finance (DeFi) platform build on the Polkadot (DOT) blockchain. 

New York-based bank Current was created to provide services to Americans overlooked by traditional banks. This morning, Current announced a partnership with Acala, a DeFi platform built on the Polkadot blockchain network

Current states that the collaboration is the first of its kind and will establish a new hybrid finance (HyFi). The new hybrid will combine both traditional and decentralized financial apps. 

Acala being their all-in-one DeFi network to the pairing that offers a blockchain platform secured by Polkadot. Additionally, as a suite of cross-chain financial apps, Acala users can trade, issue self-serviced loans, become liquidity providers of their own, access staking derivatives, and enjoy high-interest APY on digital assets.

The Current Core platform

Current will run its own infrastructure and join the active validator set on Polkadot. The merger with Acala is incorporated directly into Current’s bespoke banking platform, Current Core. The core banking platform is intended to bridge closed-loop fiat systems to open platforms. The move is expected to speed up the development of HyFi infrastructure.

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Current Core is set to provide stability, faster transactions, and cost efficiencies that the community can utilize. The firm has backing from investors such as Tiger Global, Sapphire Ventures, Foundation Capital, Avenir, Wellington Management Company, EXPA, QED, and Elizabeth Street Ventures.

On May 17, it was announced that Bank of America had joined with Paxos, a blockchain-based settlement network for U.S. equities. The second-largest U.S. bank has been conducting internal transactions for months on its own. Now, if approved as a clearing agency, Bank of America will begin to offer the service to customers as well.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.