‘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.
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.
This content is available exclusively to Tearsheet Outlier members.
Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account