Institutions often have access or control huge amounts of funds sometimes held in dormant accounts for a long time. That’s where Curv, an institutional-focused crypto custody infrastructure provider.
The company helps such institutions store the keys to their crypto safely. Their clients include exchanges, fund managers, and similar virtual asset-focused businesses. The impetus to adhere to higher-security standards is extremely high and to reduce the risks, they use custody firms such as Curv. However, as the crypto market matures, it is becoming more evident that the funds held in custody can always be put to better use and one of those uses is lending it out to DeFi protocol clients such as Compound and Curv has done just that.
In a press release on Thursday, the company announced its newest partnership with Compound, the leading DeFi protocol which will see its clients lend out their funds under Curv management lent out for interest gaining efforts. Decentralized Finance (DeFi) is a rapidly growing industry currently worth about $8 billion, which is up about 240% YTD.
Compound’s native token COMP and platform trading token cDAI are currently topping the charts in terms of market value with $1.5B and $900M respectively. Choosing Compound as the preferred DeFi partner is almost a no-brainer for Curve and its clients.
“Our growing list of institutional clients, including exchanges, custodians and asset managers, have all turned to Curv to secure their digital assets and support their adoption of new financial products in the digital economy,” Curv’s Co-founder and CEO Itay Malinger said. “We’re excited to integrate Compound and simplify the experience so that we can make DeFi secure and accessible to an institutional audience.”
Compound uses Ethereum-based smart contracts to offer soft loans to individuals and institutions alike with collateral. This can be other tokens or coins supported by the protocol such as bitcoin. This allows individuals with coins or tokens held in wallets to monetize them by lending to other people for interest. It is a simple concept that has attracted a lot of attention and interest.
The idea works especially well in crypto since most individuals in the crypto scene are investors and traders. Additionally, there are limited opportunities to use the crypto in their wallets more conveniently. Although this is soon becoming less of a factor due to the proliferation of crypto debit cards in the market.
This partnership between Compound and Curv will possibly bring more liquidity into the DeFi market and this can only be good news for both parties.
“Curv is a leading custodial technology player focused on serving the institutional community,” Compound’s founder and CEO Robert Leshner said. “Their integration is an exciting advancement in expanding enterprise-grade access to and ownership of the Compound protocol.”
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