DeFi project Compound launches institutional lending service

Compound Labs, the company behind the eponymous lending project, announced the launch of a lending service for institutional investors.

Starting today, to meet the growing demand for liquidity, institutions can now borrow from Compound Treasury, using digital assets as collateral.https://t.co/xgDIep18Qa

— Compound Labs (@compoundfinance) September 14, 2022

The solution built on the protocol powers the Compound Treasury unit. Companies and financial institutions can borrow in US dollars and the stablecoin USDC, collateralised by digital assets.

Bitcoin, Ethereum and ERC-20 tokens supported by the platform can serve as collateral.

According to the statement, loans are issued without fixed terms or repayment schedules, at interest rates from 6% per annum. Clients will be free to use the liquidity as they see fit, provided the collateral remains sufficient.

In June, Compound Treasury launched an institutional treasury management solution built on the protocol. Users could earn returns on USD and USDC of up to 4% per annum.

The company noted that liquidity for the lending service is provided by both the clients of Compound Treasury and the Compound Protocol, with assets valued at more than $3 billion.

“Lending expands our treasury management product to meet a broader range of client needs,” said Reid Kaming, Vice President of Compound Treasury.

Back in August, the DeFi project launched the third version of the protocol named Comet.

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