Crypto security firm Fireblocks has been integrated with the DeFi Compound platform to enable its customers to earn interest through Compound’s lending protocol.
According to the press release, Fireblocks customers can now use the assets stored in the Fireblocks Hot Vault in Compound and start getting passive returns.
Fireblocks use multiparty calculation (MPC) to ensure the transfer of user goods. They can store their assets in the Fireblocks Hot Vault – which offers both online and offline storage capabilities – and can move their funds between wallets.
Currently, investors should use Web-3 wallets, such as hardware wallets or MetaMask, to access platforms such as Compound. This method is not feasible for institutional investors.
“I think most OTC businesses and offices are using Fireblocks now because it allows funds to be moved with MPC. The system allows the creation of keys separately and reduces the risk of losing them ”,
explained Kevin Yedid-Botton, director of ParaFi investment company, which is a Fireblocks customer.
“This integration allows institutional investors to integrate with a classic DeFi platform and create a bridge between the big players and the loan system.”
Fireblocks is a crypto start-up backed by investment giant Fidelity, which helps companies keep their crypto assets safe when they move between smart contracts. CEO and co-founder Michael Shaulov told Forbes in November that the value of the assets under management amounts to $ 2.5 billion daily.
DeFi Compound platform
Compound is a decentralized financing protocol that allows anyone to get loans in cryptocurrencies, guaranteed by crypto deposits. Customers can also earn passive interest income when lending their cryptocurrencies. To date, Compound has borrowed $ 163 million on eight markets.
Fireblocks estimates that the DeFi lending industry worldwide has reached $ 4.7 billion.
“The industry has been waiting patiently for a secure institutional platform that can access the Compound markets”,
said Robert Leshner, CEO and founder of Compound.
“The possibility of adding returns to the existing workflow is a significant advantage that will allow institutional investors to enter into decentralized finance for the first time.”
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