NEW YORK, March 17, 2020 /PRNewswire/ -- Fireblocks (www.fireblocks.com), the most trusted digital asset security platform for institutions, announced today it has integrated with Compound (compound.finance), a Decentralized Finance (DeFi) lending platform with $163M in interest-earning assets across 8 markets. This is the first and only institutional implementation of MPC on a DeFi protocol, providing secure and instantaneous access to the billion-dollar DeFi economy.
Starting today, OTCs, Market Makers, Hedge Funds, and Exchanges can safely deploy assets onto Compound – an algorithmic, autonomous interest rate protocol offering 3-7% interest – with the click of a button.
The Compound integration offers a number of different use cases for Fireblocks' customers. Customers like AmberAI are looking to passively earn interest on digital assets stored in their Fireblocks Hot Vault, even in short intervals. At the same time, Parafi, an alternative investment firm specializing in decentralized finance, is employing Fireblocks to safeguard assets from the growing number of crypto cyberattacks.
"The integration between Compound and Fireblocks allows us to deploy systematic DeFi credit strategies while maintaining the highest level of fund security on an institutional-grade platform," says Kevin Yedid-Botton, CEO of Parafi.
Before Fireblocks, the primary method for accessing Compound's services was through MetaMask – a Chrome web extension-based token wallet and key vault. While this was sufficient for some retail customers, institutions have largely been unable to interact with smart-contract based platforms, leaving them on the sidelines of a $4.7 billion digital asset lending industry.
"This integration offers unparalleled security around private key protection for smart-contracts," said Uri Stav, CSDO at Genesis Global Trading. "As Compound is a smart-contract based protocol, leveraging MPC is the only way to layer institutional controls like multi-user approvals and eliminate a single point of compromise when depositing funds into Compound, and during redemption of the loan."
Fireblocks plans to continue expanding upon its integration with Compound and other smart-contract based platforms to provide a secure pathway for institutions to participate in DeFi innovation.
"The industry has been waiting patiently for a secure, institutional platform that can access Compound markets," said Robert Leshner, CEO, and Founder of Compound. "Being able to add incremental returns into your existing workflow is a game-changer that will allow institutional investors to enter decentralized finance for the first time."
Fireblocks provides financial institutions with an enterprise-ready platform for scaling their digital asset operations. Powered by patent-pending MPC and chip-level hardware isolation technology, Fireblocks' easy-to-use solution gives fintech companies the tools they need to securely launch offerings across custody, lending, trading, and token issuing. Trusted by the largest and most innovative financial institutions in the world, Fireblocks has become the preferred partner for safeguarding the transfer of billions of dollars of digital assets across exchanges, wallets, and other counterparties.
Compound is an open-source, autonomous interest rate protocol on the Ethereum blockchain, allowing users & applications to frictionlessly earn interest or borrow crypto assets. Compound Labs, Inc., the team that develops the core protocol infrastructure and the tools to empower new integrations, is based in San Francisco and is backed by investors including a16z Crypto, Coinbase, Paradigm, and Polychain.