Fireblocks, a digital asset security platform, today announced that it has integrated Compound, a decentralized finance (DeFi) lending platform with $163M in interest-earning assets across 8 markets.
Starting today, OTCs, market makers, 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.
Integration with Compound offers Fireblocks’ clients a number of different use-cases…
Customers like AmberAI are looking to passively earn interest on crypto-assets stored in their Fireblocks Hot Vault, even in short intervals. Furthermore, Parafi, an alternative investment firm specializing in DeFi; 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.”
– Kevin Yedid-Botton, CEO of Parafi
Before Fireblocks, the primary method for accessing Compound’s services was through MetaMask; the 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. 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.”
– Uri Stav, CSDO at Genesis Global Trading
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 the DeFi economy.
“The industry has been waiting patiently for a secure, institutional platform that can access Compound markets. 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.”
– Robert Leshner, CEO, and Founder of Compound