Current Announces Partnership with Decentralized Finance Platform Acala

As many aspects of money modernize, the lines between FinTech and traditional finance have begun blurring. Similarly, another trend has brought fiat currencies and cryptocurrencies closer together, allowing all kinds of platforms to harness the power of blockchain. With that in mind, two FinTechs have revealed plans to create a “HyFi” platform.

This week, the FinTech banking platform Current announced that it would be working with Acala, a decentralized finance tool built on the Polkadot blockchain network. With the partnership, the firms are looking to create a new category called hybrid finance — or HyFi. As the name implies, this combines traditional finance tools with decentralized finance applications. According to Current, in a bid to “ensure full trust of these products,” the company will join the active validator set on the Polkadot network.

Current says that the integration with Acala will be built into their Current Core platform. As a result, the pair hope to accelerate the timeline for when the HyFi experience will be developed and become available to Current’s more than three million users. No timeline for when the fruits of this partnership will be evident was revealed just yet.

Commenting on what the partnership means for Current and its platform, the company’s chief technology officer Trevor Marshall said in a statement, “We created Current because we could see how money was being re-networked through new technologies. Our initiative with Acala allows us to flex this muscle we have been developing for the past six years.” Meanwhile, Acala co-founder Bette Chen said, “Current is leading the way at the intersection of modern banking and decentralized finance. The integration between Acala and Current is a groundbreaking innovation, and we are excited to bring cutting-edge financial solutions to Current’s members.” Chen went on to tease, “This is only the tip of the iceberg of the products we can build to blend traditional FinTech and crypto-native products.”

This ambitious partnership with Acala comes on the heels of Current closing a $220 million funding round last month. The Series D was led by Andreessen Horowitz and valued the FinTech at $2.2 billion — tripling its valuation from just five months prior. To date, the company has raised a total of $400 million for its mobile banking app.

In many ways, HyFi certainly sounds like the future of FinTech banking services. Of course, it remains to be seen how this partnership between Acala and Current will impact customers of the growing service. Nevertheless, it’s clear that the company is looking to make an impact — and has plenty of venture capital to help it do just that.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Robinhood Reveals More Details on Upcoming Retirement Account

After officially announcing plans for retirement accounts during an earnings call last month, Robinhood has now revealed more details about the upcoming feature and opened a waitlist for customers. First, Robinhood Retirement will offer both Roth and Traditional IRAs to users. With these accounts, customers will be able to invest in stocks and ETFs. Additionally, accountholders will be able to craft a custom portfolio and will be able to view...

Discover Announces 5% Bonus Categories for First Quarter of 2023

The popular Discover It card — which features 1% on all purchases as well as a slate of bonus rotating categories each quarter — has revealed what purchases will earn cardholders that 5% bonus starting January 1st. For the first quarter of 2023, Discover It cardholders can earn 5% back on grocery store, drug store, and select streaming service purchases. However, there are a few asterisks to note with this offer....

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...