Decentralized finance (DeFi) lending platform Compound has announced a product for businesses and institutions. The DeFi lending pioneer made the announcement in a blog post on June 29, adding that the new Compound Treasury is designed to allow local businesses and financial institutions unrelated to cryptocurrencies to access the benefits of the protocol.
Compound noted that the protocol has worked flawlessly throughout the market volatility, securing itself as a pillar of the DeFi ecosystem. Compound wants to bring this security and reliability to institutional investors by expanding its product range.
Beat the Banks with Compound Treasure
Compound Finance will work with Fireblocks, the cryptocurrency custodian that partnered with BadgerDAO in April, and Circle, the company behind the USDC stablecoin. The new product will give Neobanks, fintech startups and other major USD holders access to the interest rates available in the USDC market on the protocol. It will remove the complexities associated with DeFi such as cryptocurrency wallet management and private key storage, and the whole process will be simplified.
Customers will need to transfer US Dollars to their Compound Treasury accounts and get instant 4% annual interest rates. That’s a “large” rate higher than any bank can offer on dollar savings accounts. Withdrawals can be made at any time with a 24-hour turnaround time and there are no low minimums, maximums, and fixed terms or periods. Compound has started adding clients and plans to significantly expand access to treasury accounts in the coming months.
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