Compound Treasury Announces the Launch of an Institutional Borrowing Service

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Last Updated on September 16, 2022 by Bitfinsider

The industry has seen an increase in the demand for liquidity. To meet this rising demand, Compound Treasury has announced the launch of an institutional lending program in which major institutions can borrow funds by pledging their digital assets as collateral. Compound Treasury is known in the industry for its high levels of transparency and accountability as the first DeFi-backed company to receive a high credit rating from a major agency. Accredited institutions will be able to borrow USD or USDC at fixed interest rates beginning at 6% APR under the new program. Bitcoin, Ether, and supported ERC-20 tokens are among the digital assets accepted as collateral.

The industry has seen an increase in the demand for liquidity. To meet this rising demand, Compound Treasury has announced the launch of an institutional lending program in which major institutions can borrow funds by pledging their digital assets as collateral. Compound Treasury is known in the industry for its high levels of transparency and accountability as the first DeFi-backed company to receive a high credit rating from a major agency. Accredited institutions will be able to borrow USD or USDC at fixed interest rates beginning at 6% APR under the new program. Bitcoin, Ether, and supported ERC-20 tokens are among the digital assets accepted as collateral.

Compound Labs, a DeFi development company, launched the Compound Treasury in June 2021 to enable non-crypto businesses and financial institutions to benefit from the many use cases of DeFi and provide higher quality services to their large user base. Soon after its launch, the platform began offering an institutional cash management solution powered by the Compound Protocol with daily liquidity at 4% APR on USD and USDC. Since then, it has been a reliable source of yield thanks to S&P Global Ratings’ B- credit rating, making it the first institutional DeFi offering to be rated by a major credit rating agency. It is also a watershed moment for the crypto industry as a whole.


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