Blockchain and Crypto, Member Exclusive

‘Wire in your funds and we’ll handle the rest’: Compound Treasury gets fintech firms into DeFi

  • Compound Treasury introduces non-crypto native financial institutions to the benefits of the DeFi ecosystem.
  • The Treasury account offers a 4% fixed interest rate – much higher than a regular savings account.
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‘Wire in your funds and we’ll handle the rest’: Compound Treasury gets fintech firms into DeFi

DeFi firm Compound Labs recently launched a new product called Treasury, which is designed for non-crypto native fintechs and financial institutions to access the benefits of DeFi without dealing with the technical complexities that normally surround cryptocurrencies. The Treasury account provides a fixed annual percentage rate of 4%, which is significantly higher than what is offered by an average U.S. Dollar savings account, according to the firm.

Through a collaboration with crypto firm Circle and blockchain security service provider Fireblocks, Treasury offers access to DeFi interest rates for non-crypto challenger banks and fintechs, while taking care of operational technicalities such as private key management, Ethereum gas fees, crypto-to-fiat conversion, and interest rate volatility.

Circle provides the crypto onramps and offramps, automatically converting customers’ U.S. Dollars to stablecoin USDC and sending them to the Compound protocol to generate interest. Fireblocks keeps these assets safe from attacks by providing the secure custody and protocol integration required to operate Compound’s USDC market.

Once USD funds are added to the Compound Treasury account, it acts somewhat like a regular savings account. Customers earn interest on a daily basis, and they can make deposits or withdrawals at any time, with a 24-hour turnaround. They also have access to real-time balances and transaction history.


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