Defi Lending Startup Aave Launches Authorized Platform to Attract Financial Institutions – Defi Bitcoin News
On January 5, the open source non-depository decentralized finance (challenge) lending platform Aave launched an authorized version of the protocol intended for institutions. The platform dubbed Aave Arc will leverage Fireblocks as the first whitelist, as the platform aims to help bridge the gap between traditional financial institutions and the challenge.
KYC-Centric Defi Liquidity: Aave launches the Aave Arc authorized protocol for financial institutions
Aave on Wednesday launched an authorized platform called Aave Arc, a new protocol dedicated to financial institutions that wish to participate in the challenge in a compliant manner. Aave is a popular challenge lending platform and the Challenge Protocol has the third Total Locked Value (TVL) today. Metrics show Aave has $ 14.52 billion TVL spread across three blockchains, including Ethereum, Avalanche, and Polygon.
The crypto custodian Firewall approved 30 financial entities to join the Aave Arc. The list includes companies like Ribbit Capital, Coinshares, Hidden Road, Wintermute, and Celsius. Aave unveiled the Aave Arc concept in July 2021, and in mid-November it was disclosed that Fireblocks was the first whitelist. The startup defi also described how Aave Arc works after explaining that defi was “inaccessible to traditional financial institutions”.
“Aave Arc is an authorized market based on the Aave V2 market”, Aave noted at the time. “In a spirit of innovation and experimentation, Aave Arc creates a native Web3 experience allowing financial institutions to harness the power of challenge in an authorized sandbox environment. The challenge startup added:
True to the values of challenge, Aave Arc is designed to be fully decentralized and governed by the governance of Aave. The “white lists” that KYC and the institutions and companies integrated on Aave Arc can be named or removed by the governance of the Aave protocol.
Fireblocks whitelist envisions ‘institutional interest in accelerating cryptocurrency in 2022’
Essentially, the new platform allows traditional financial firms to participate in the Aave system but take advantage of an authorized liquidity pool. Cryptocurrency custodian firm Fireblocks believes more institutions will embrace cryptocurrency and the belief is the company’s main prediction for 2022. “Institutional interest in crypto will accelerate in 2022,” says Fireblocks in a blog post.
“This adoption will gain momentum with the post-trade infrastructure developments that are currently being implemented in the market,” adds the Fireblocks 2022 prediction post.
Aave’s native crypto asset, aave (AAVE) has a market valuation of approximately $ 3.47 billion on January 5, 2022 and a global trade volume of $ 294 million. Weekly stats show AAVE up more than one percent, two-week metrics show asset has gained 38.1% and year-to-date AAVE has gained 135 %.
What do you think of the Aave Arc authorized challenge platform? Let us know what you think of this topic in the comments section below.
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