Digital asset transfer platform Fireblocks announced today it has integrated with Compound, marking the first-ever institutional implementation of multi-party computation (MPC) on a DeFi protocol.
Institutional Players Enter DeFi
Starting today, OTC desks, market makers, hedge funds, and exchanges can safely deploy assets onto Compound, an algorithmic, autonomous interest rate protocol offering 3% to 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.
CEO and co-founder of Fireblocks, Michael Shaulov, said on the announcement:
“The Fireblocks-Compound integration represents a critical turning point not only for Fireblocks users, but also for DeFi as a whole,” said “We’re pushing the envelope on what our users can do with the digital assets that they’re holding at any moment, and which markets they’re able to access. At the same time, this is really the first time that institutional players with sizable crypto holdings can securely enter the DeFi market.”
Compound Expected to Onboard More Users
Before Fireblocks, the primary method for accessing Compound’s services was through the popular token wallet MetaMask.
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.
Fireblocks plans to continue expanding on 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.”
