Algorand has disclosed details of an ongoing platform project called Algomint, a digital asset minting platform built on the Algorand blockchain. The project is scheduled to launch in Q3 this year, bringing wider liquidity options to the network.
Algomint’s minting platform was built by Meld Gold Founders Michael Cotton and AJ Milne. Meld Gold is a gold investments management firm serving digital certificates to investors, alongside a digital gold wallet integrated with both Algorand and Ledger’s Nano X crypto storage hardware.
Algomint will enable users to trade Bitcoin directly on the Algorand DeFi marketplace. It does this by minting goBTC on its platform and locking the original Bitcoin value on a 1:1 ratio through a secure third-party custody vault. When users withdraw the Bitcoin, the requisite goBTC will be burned and the network will release their Bitcoin to their designated wallets.
According to Algomint, further integrations with other cryptocurrency assets such as Ethereum and the USDT stablecoin are under development. The Q3 product launch slated for this year will initially offer goBTC and goETH as core assets for its ecosystem.
“We are excited to see Algomint providing a necessary bridge for digital assets to enter the growing Algorand ecosystem and the opportunities that will be opened up for users,” shared Algorand COO Sean Ford. “Tools like Algomint serve as foundational components for the incredible expansion of DeFi on Algorand that we are currently seeing.” he adds.
Algorand’s pure proof-of-stake blockchain protocol was chosen by Algomint’s founders and partners given how it represents technical features such as zero uncertainty block finality, high-throughput and scalable transactions, non-forkability, and the Algorand blockchain’s innovative measures for carbon neutrality.
The rapid growth of the decentralized finance sector has seen the ecosystem surging 7,500% on a year on year basis since 2020, and financial institutions are leveraging DeFi’s potential for a further boom.
“This is a significant opportunity and the potential for impact is huge. As Algorand users access the platform, having the ability to take advantage of transaction speeds of 4 seconds and costs of less than $0.001. Suddenly the market has a very different proposition.” shared Henrik Andersson, Chief Investment Officer of Apollo Capital, a core partner of Algomint.
Algorand currently serves over 500 decentralized applications with transaction volumes running to over 500,000 on a daily basis. Algorand is a fully regulated and compliant blockchain that can meet critical requirements set forth by established financial institutions looking for integration with or exposure to crypto assets.
The Algomint platform will also introduce its native governance token, goMNT, in Q3 this year. The platform also expects to launch goUSD, its native stablecoin pegged to the U.S. dollar, and introduce programmable liquidity functions to its suite of services through its Balancer decentralized exchange (Balancer DEX). Staking for goMNT is also on the development roadmap for 2022.
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