{"id":45180,"date":"2021-06-29T16:14:48","date_gmt":"2021-06-29T13:14:48","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=45180"},"modified":"2025-08-31T20:32:10","modified_gmt":"2025-08-31T17:32:10","slug":"compound-labs-opens-defi-access-for-institutions","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/compound-labs-opens-defi-access-for-institutions\/","title":{"rendered":"Compound Labs opens DeFi access for institutions"},"content":{"rendered":"<p>Compound Labs, the team behind the eponymous lending project, has launched its subsidiary Compound Treasury. It provides neobanks and other financial institutions access to the DeFi ecosystem <span data-descr=\"decentralized finance\" class=\"old_tooltip\">DeFi<\/span>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We&#8217;re proud to announce Compound Treasury, designed for businesses and financial institutions to access the benefits of the Compound protocol.<\/p>\n<p>The idea is simple: a fixed 4% APR on US dollars, with daily liquidity and none of the complexity of crypto.<a href=\"https:\/\/t.co\/l8ih8IzrHh\">https:\/\/t.co\/l8ih8IzrHh<\/a><\/p>\n<p>\u2014 Compound Labs (@compoundfinance) <a href=\"https:\/\/twitter.com\/compoundfinance\/status\/1409590399794962435?ref_src=twsrc%5Etfw\">June 28, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Compound Treasury, with the help of Fireblocks and Circle, allows clients to convert US dollars into the stablecoin <span data-descr=\"managed by the Centre consortium led by Circle and Coinbase\" class=\"old_tooltip\">USD Coin<\/span> (USDC). The tokens are used in the Compound protocol at a guaranteed 4% interest rate. This is significantly higher than what institutions can earn on traditional bank savings accounts (<a href=\"https:\/\/www.bankrate.com\/banking\/cds\/cd-rates\/\">0.55%-0.7% annually<\/a>).<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;This is the path to our company&#8217;s sustainability. If the interest rates in Compound over time bring more than 4%, the business will make money. It is also an opportunity to offer a new financial product awaited by fintech companies,&#8221; said Compound founder Robert Leshner in an interview with <a href=\"https:\/\/www.coindesk.com\/compound-labs-launches-treasury-to-get-big-firms-reaping-defi-yields\">CoinDesk<\/a>.<\/p>\n<\/blockquote>\n<p>According to the press release, clients of the new structure will gain access to relatively high Compound market rates, avoiding the protocol&#8217;s complexities such as private-key management and converting crypto to fiat.<\/p>\n<p>As of writing, the yield on USDC deposits in Compound stands at 1.67%. However all protocol users still earn governance tokens COMP, whose rising value could enable Compound Treasury to offer clients higher yields.<\/p>\n<p>Over the last 24 hours, the price of COMP rose by nearly 14%, according to CoinGecko. At the time of writing, the token was trading at around $318.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"502\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/comp-1-1024x502.png\" alt=\"Compound Labs gives institutions access to the DeFi ecosystem\" class=\"wp-image-140618\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/comp-1-1024x502.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/comp-1-300x147.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/comp-1-768x377.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/comp-1-1536x754.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/comp-1.png 1828w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>COMP\/USDT price chart on Binance. Data: <a href=\"https:\/\/ru.tradingview.com\/chart\/00O1pBoT\/\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>Leshner stressed that Compound Treasury will offer clients services tied exclusively to stablecoins. The decision is motivated by the risk inherent in operations with volatile cryptocurrencies.<\/p>\n<p>An account in Compound Treasury will operate like a normal savings. Users will be able to deposit and withdraw funds at any time.<\/p>\n<p>According to Leshner, his company initially planned to create a DeFi protocol, and then on its basis build a profitable business. Compound Treasury embodies that idea.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;This is what Compound Labs offers \u2014 dollar access to the protocol. I think this business could be shockingly big and profitable,&#8221; he added.<\/p>\n<\/blockquote>\n<p>Senior Messari analyst Mira Kristanto also noted that Compound&#8217;s yields vastly exceed the equivalent of deposits in traditional banks, so the project could be successful.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">And cause it&#8217;s not happening fast enough, DeFi is coming for Wall Street \u2014 with a 4% yield on US$ vs <1% yields sitting at the bank.<a href=\"https:\/\/t.co\/UPxe42dZB4\">https:\/\/t.co\/UPxe42dZB4<\/a><\/p>\n<p>\u2014 Mira Christanto (@asiahodl) <a href=\"https:\/\/twitter.com\/asiahodl\/status\/1409818125655166983?ref_src=twsrc%5Etfw\">June 29, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;When Wall Street offers DeFi yields to clients, people will finally wake up,&#8221; she said.<\/p>\n<\/blockquote>\n<p>According to Patrick Hoisser, head of trading at Crypto Broker AG, when this happens, &#8216;the yield difference will be different from what it is now.&#8217; He did not specify in which direction the metric would change.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Compound Labs, the team behind the eponymous lending project, has launched its subsidiary Compound Treasury. It provides neobanks and other financial institutions access to the DeFi ecosystem.<\/p>\n","protected":false},"author":1,"featured_media":45181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1494,1093,1156],"class_list":["post-45180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-compound-comp","tag-defi","tag-institutional-investors-and-whales"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=45180"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45180\/revisions"}],"predecessor-version":[{"id":45182,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45180\/revisions\/45182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/45181"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=45180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=45180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=45180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}