Compound Treasury for financial institutions
Compound Treasury for non-crypto businesses and financial institutions
- On the 28th of June, the Compound Protocol annouced a new product, called Treasury. The Compound Treasury is designed for non-crypto native businesses and financial institutions to access the benefits of the Compound protocol.
- The idea behind the Compound Treasury is simple: a fixed 4% APR on US dollars, with daily liquidity and none of the complexity of crypto. Their vision is that Compound Treasury becomes the bridge for non-crypto financial institutions to deliver the core benefits of DeFi to the next billion users, and we are extremely excited to work with our customers to navigate this enormous opportunity.
As a fintech-focused on building inspirational and motivational products, we’re constantly looking for more ways to deliver even more value back to our members. Working with Compound Treasury, we’ll be able to give our members access to the protocol’s interest rates through a simple and unified experience that can enable even more people to improve their financial outcomes.
— Trevor Marshall, Chief Technology Officer
- How does the product work?
- Treasury Accounts converts your U.S. Dollars to USDC, a digital dollar stablecoin, and supplies them to the Compound Protocol to generate secure, high-yield interest. This enables institutions to access crypto interest rates while abstracting away operational complexities including cybersecurity, compliance, private key management, fiat-to-crypto conversion, and interest rate volatility.
With the Compound Treasury institutions get an easy access to DeFi returns.
- Read the full medium article about the Compound Treasury here.
- RISK DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article’s content solely reflects the opinion of the writer, who is not a financial advisor. Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.