Compound Treasury, a cash management solution for institutions powered by the Compound protocol, announced on September 14 that accredited institutions can now use Bitcoin, Ethereum and USD with fixed rates starting at 6% APR using supported ERC-20 assets. Or borrow USDC. collateral.
Starting today, institutions can now borrow from Compound Treasury, using digital assets as collateral, to meet the growing demand for liquidity.https://t.co/xgDIep18Qa
— Compound Labs (@compoundfinance) 14 September 2022
The DeFi-backed company whose notable clients include crypto companies, fintech institutions and banks, shared that the decision was made in response to recent market volatility, which has created a stronger demand for liquidity.
Reed Cumming, VP of Compound Treasury, said, “Compound Treasury can now meet liquidity demands with simple, reliable lending solutions, while continuing to provide the same reliable service that we have provided over the past year to interest-earning customers. Have given.” He added:
“The launch of Lending expands our cash management product to meet the greater needs of our customers.”
In an official statement, the company announced that borrowing for customers will remain flexible, with “an open-ended term” and “no repayment schedule” as long as participating customers remain overcollateralised. Collateral provided by lending institutions is not expected to relinquish control of Compound Treasury, thereby increasing transparency and security of funds.
Liquidity for the program will be provided by Compound Treasury’s clients and Compound Protocol, which currently has more than $3 billion in assets and over $285 billion in total transaction volume since the company began operations.
Compound Treasury’s announcement comes after the DeFi-backed company received a B-credit rating from S&P Global in May 2022, making the company the first of its kind to receive a credit rating from a major agency.
