Crypto Shuttle News

Tag: institutions

  • Coinbase provides institutions with trusted access and storage for DeFi tokens | by Coinbase | Mar, 2022

    Coinbase provides institutions with trusted access and storage for DeFi tokens | by Coinbase | Mar, 2022

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    Coinbase

    By Sonia Pinto, Senior Product Marketing Manager and Alexis Hamel, Product Manager, Custody

    Coinbase Prime offers custody and trading for more than 50 DeFi coins and tokens, across a wide range of segments, including DEXs, lend, and borrow.We facilitate governance for a growing number of tokens including UNI, COMP, and MKR. This gives our customers the opportunity to directly participate in the governance of DeFi projects.

    Asset managers, like Grayscale and Bitwise, are increasingly stepping into DeFi beyond Bitcoin and Ethereum. FinTechs are also expanding their DeFi offerings to cater to growing demand. Venture capital funding for blockchain startups reached $25 billion last year, up 713% from $3.1 billion in 2020. Coinbase Ventures, A16Z and Paradigm are some of the VCs doubling down on DeFi.

    As one of the most trusted names in the industry, Coinbase offers access to a broad range of assets, customized account support, and a rapidly growing number of capabilities for our clients to participate in DeFi.

    DeFi Opportunities

    While Bitcoin or Ethereum are the currency of the blockchains, Defi tokens are built on top of the blockchain and represent a wide range of new opportunities for institutions. As of January 2022, nearly $200 Billion was deposited through smart contracts across major blockchains. This measure is referred to as the Total Value Locked (TVL). Ethereum-based projects alone account for 60% of DeFi TVL.

    Defi offers a global, open alternative to financial services consumers utilize today — including savings, loans, trading, and insurance — creating a financial system that is automated, accessible 24/7, permissionless and more transparent. DeFi protocols with the highest adoption rates include Compound and Aave for lending, Curve for stablecoins swap, Uniswap for token swaps, or DYDX for derivatives.

    Where do I start?

    Gain access to our prime broker by navigating to coinbase.com/prime. Click “Get started” and fill in the required information to apply for a Coinbase Prime account. For our existing clients who have a Coinbase Custody, or Coinbase Exchange account, please contact your account manager or PrimeOps@coinbase.com.

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  • Aave launches its permissioned pool Aave Arc, with 30 institutions set to join

    Aave launches its permissioned pool Aave Arc, with 30 institutions set to join

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    Decentralized lending platform Aave has launched its permissioned lending and liquidity service Aave Arc to help institutions participate in regulation-compliant decentralized finance.

    As opposed to its permissionless cross-chain counterparts on the platform, Aave Arc is a permissioned liquidity pool specifically designed for institutions to maintain regulatory compliance in the decentralized finance (DeFi) space.

    The first of 30 entities lined up for the whitelist for Aave Arc was Fireblocks, the institutional digital asset custodian. It explained in a Jan. 5 announcement the pool “enables whitelisted institutions to securely participate in DeFi as liquidity suppliers and borrowers.”

    Users of Aave Arc must perform due diligence procedures such as know your customer/ anti-money laundering (KYC/AML) in order to gain access.

    Slides from Aave’s first reveal of the permissioned pool in July 2021.

    Fireblocks also serves as a whitelisting agent for Aave Arc, ensuring other institutions that wish to join the permission pool perform KYC/AML requirements. Aave cannot perform this task itself because it is not a regulated entity such as a bank or other traditional finance institution. 

    As the whitelisting agent, Fireblocks has already approved “30 licensed financial institutions to participate on Aave Arc as suppliers, borrowers, and liquidators.”

    Among some of the whitelisted entities are Anubi Capital, Canvas Digital, CoinShares, GSR, and crypto yield aggregator Celsius.

    Related: SBF ‘optimistic’ about institutional crypto adoption in 2022

    Aave’s new permissioned liquidity pool aims to onboard more institutions to the burgeoning DeFi space that has $133 billion in total value locked (TVL) as of time of writing. That TVL has grown 4.5 times since Jan. 10 of 2021 according to DappRadar.

    While institutions began purchasing cryptocurrency in increasingly sizable portions in 2021, most remained skittish about dabbling in DeFi due to compliance hurdles and regulatory uncertainty.