Compound Treasury Allows Investors To Use Crypto As Collateral To Borrow USD And USDC
After a series of recent outstanding developments, Compound Treasury continues to launch the next new direction for institutional investors.
Compound Treasury – a cash management solution for institutions powered by the leading lending platform on Ethereum Compound, announced on September 14 that institutions covered by the project’s accreditation can now borrow USD or USDC at a fixed interest rate starting at 6% APR, using Bitcoin (BTC), Ethereum (ETH) and ERC-20 assets as collateral.
Companies that will be supported by Compound in the new product include crypto, fintech, and banking. The decision was in response to recent market volatility, creating stronger liquidity needs for the traditional first to enter the cryptocurrency industry. Reid Cuming, Vice President of Compound Treasury said:
“Compound Treasury can now address demand for liquidity with simple, reliable borrowing solution, while continuing to provide the same trusted service we’ve delivered to clients earning interest over the past year. Introducing borrowing expands our cash management product to meet more needs of our clients.”
In addition, Compound added that borrowing for customers will remain flexible, with open terms and no repayment schedule, as long as participating customers allocate capital appropriately. The collateral provided by the borrowing institutions is not expected to escape the control of the Compound Treasury, thereby increasing the transparency and safety of the funds.
Liquidity for the above program will be provided by Compound Treasury customers and from Compound itself, which currently has assets of more than $3 billion and owns a total trading volume of more than $285 billion since the company started operations.
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