Hong Kong-based Hex Trust broke new ground in the cryptocurrency world by partnering with blockchain developer Monad Labs. This partnership will enable Hex Trust to offer layer-1 protection services for the Monad ecosystem for the first time.

The press release made by Monad Labs was also shared by crypto.news website. The statement emphasizes that the collaboration is “an important milestone”. With this collaboration, Hex Trust becomes “the first custody company to protect assets on the Monad blockchain.” Monad Labs’ business development leader, Joey Anthony, explains the rationale for the collaboration. Anthony states that they chose this company because of Hex Trust’s key role in the APAC (Asia Pacific) and MENA (Middle East and North Africa) regions.

Founded in 2022, Monad is a company based on blockchain technology. Monad, developed by the company, is defined as a layer-1 network that uses the Ethereum Virtual Machine (EVM) to provide more efficient transaction processing and instant block finality. This technology aims to increase transaction speeds and reduce fees compared to traditional blockchain networks.

Monad Labs completed a significant investment round in April 2023. In this investment round led by Paradigm, $225 million in funds were collected. This funding will be used for the development of Monad’s layer-1 network.

Monad also appears to be working on its own cryptocurrency. Technical documents that appeared in September 2023 point out the existence of a token called “mon”. Although subsequent developments regarding the token have not been made public, it is estimated that “mon” will be used for transaction payments within the blockchain ecosystem.

This collaboration is important for the cryptocurrency market in several ways. Firstly, this step, pioneered by Hex Trust, opens a new chapter in layer-1 protection. Traditionally, asset protection services have been offered at higher tiers. The collaboration between Hex Trust and Monad means moving these services directly to the layer-1 level. This can be considered a positive development in terms of security and transparency.

Secondly, collaboration is also important for the future of Monad. Monad is still a new project and the development of the layer-1 network continues. Establishing a partnership with a reliable custody company such as Hex Trust can strengthen Monad’s reputation and increase investors’ confidence.

The cooperation between Hex Trust and Monad can be considered as an important development in the cryptocurrency market. This collaboration has the potential to set a new standard in layer-1 protection. It can also contribute to the development of new projects such as Monad. In the coming period, it will be useful to follow how this cooperation will result and how it will affect the cryptocurrency market.