Custody startup Curv is using the leading lending protocol in decentralized finance (DeFi) to help institutions that want to earn money on idle crypto.
By way of the Compound protocol, Curv is offering its service to asset managers, exchanges and other institutional clients. Only deposits will be supported for now, though Curv says there are plans to enable clients to borrow crypto assets through Compound in the near future.
“We got requests for it maybe about two, two-and-a-half months ago,” said Curv Chief Operating Officer Josh Schwartz. “Compound is the first DeFi integration. They’ve seen a lot of growth lately, and they lead the way with 40% of DeFi value locked up in their protocol.”
Schwartz wouldn’t comment on what Curv’s next DeFi integration would be, but to make Compound happen the company had to build a separate “policy engine” that matched up with Compound’s Ethereum-based smart contracts.
“[Compound] has a long list of institutions who would love to interact with them but need a secure stack to do so,” Schwartz said.
Curv is a custody startup that specializes in multi-party computation. In April, the company expanded into Asia with an office in Hong Kong and a partnership with Japan-based Crypto Garage. Earlier this month, Curv announced a $23 million Series A funding round with backing from the likes of Coinbase Ventures and the investment arm of Germany’s Commerzbank.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.