Aave has launched its institutional product, Aave Arc.
It will initially be open to 30 institutions that have been whitelisted by Fireblocks.
Bitcoin and Ethereum saw a wave of institutional interest amid crypto’s 2021 boom, but DeFi is still unexplored territory to most institutions.
Share this article
Aave has opened its regulated DeFi product to 30 institutions with the help of Fireblocks.
Aave Rolls Out Institutional Offering
Aave has launched its institutional product.
The DeFi project, which is currently the largest lending protocol in the crypto ecosystem, has opened its new Aave Arc offering up to 30 investment firms in partnership with Fireblocks.
Aave Arc will cater to financial institutions and corporates, giving them a way to borrow digital assets and capture the high yields DeFi offers within a sandboxed regulatory environment. Unlike its regular non-custodial protocol, the liquidity pools in Aave Arc are permissioned, meaning that any institution looking to use the service must be whitelisted first. Fireblocks is responsible for completing the necessary checks to onboard each firm by following KYC/CDD/EDD principles and the Financial Action Task Force’s guidelines.
Michael Shaulov, the CEO of Fireblocks, commented on the partnership, noting that “regulated DeFi tooling could unleash a wave of new products and services such as flash-loans and high-yield deposit accounts.”
Aave Arc will initially be open to 30 whitelisted institutions, including Anubi Capital, Bluefire Capital, Canvas Digital, Celsius, CoinShares, GSR, Hidden Road, Ribbit Capital, and Covario QCP Capital, and Wintermute.
Since launching on Ethereum, Aave has seen huge success, attracting over $26 billion in total value locked. In 2021, it expanded to Polygon and Avalanche amid rising demand for DeFi on lower-cost alternatives to Ethereum. Aave Arc will give institutions access to its popular borrowing and lending services, but it will be segregated from its retail markets.
The new product has been in development since the second quarter of 2021. In a press release, Aave founder and CEO Stani Kulechov said that DeFi had been “inaccessible to traditional financial institutions for far too long,” and that the rollout would help them “participate in DeFi in a compliant way for the very first time.”
Institutional interest in crypto soared in 2021 as the space saw rapid growth. After the likes of MicroStrategy made corporate investments in Bitcoin, major banks such as JPMorgan and Morgan Stanley announced plans to offer Bitcoin products for wealthy clients. While Ethereum has also attracted the attention of some larger players, institutions have largely DeFi has largely remained on the sidelines of DeFi. However, products like Aave Arc could soon change that.
Meltem Demirors, Chief Strategy Officer at CoinShares, described institutional participation in DeFi as “inevitable,” adding that CoinShares was “excited to support Aave Arc to unblock the next wave of institutional capital by bringing safer, more convenient access to new market structure.”
Aave is not the only DeFi lending protocol that’s aiming to cater to growing institutional demand. In June, Compound unveiled a similar institutional product called Treasury that offers investors high-yield interest on USDC stablecoin markets. As more DeFi projects look to roll out new offerings catering to the institutional market, it’s likely that an increasing number of major players will enter the space as its grows.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Aave Has a Private Pool for Institutions Testing DeFi
Aave, a DeFi cornerstone, has caught the interest of institutions. Aave Sees Institutional Adoption Institutions are beginning to use Aave, Stani Kulechov has confirmed. The DeFi protocol’s founder revealed the…
Aave CEO Says Yield Farming “Craze” Is Coming to an End
Stani Kulechov, the CEO of Aave, highlighted some of the problems with the copy-and-paste nature of today’s DeFi space, adding that the overall fundamentals are still strong. Aave CEO Defines…
Aave Launches AMM Liquidity Pool, Hints at “New Frontiers”…
Aave, one of Ethereum’s leading DeFi protocols, has announced a major upgrade. Aave Goes Multi-Market “In DeFi, there are no Aave users, and there are no AMMs users. There are…
Audience Survey: Win A $360 Subscription To Pro BTC Trader
We’re doing this because we want to be better at picking advertisers for Cryptobriefing.com and explaining to them, “Who are our visitors? What do they care about?” Answer our questions…