Compound Labs has announced the launch of their latest initiative, the Compound Treasury, designed for non-crypto businesses and financial institutions to access the benefits of the Compound protocol.
Compound Treasury To Improve Future Of Fintech
With the help of Compound Treasury accounts, US$ can now be converted to USDC, which is a digital dollar stablecoin. Once converted, it is then fed to the Compound Protocol to generate high profits based on the high crypto interest rates. It also eliminates operational complexities like cybersecurity, compliance, private key management, fiat-to-crypto conversion, and interest rate volatility.
This functionality was achieved through working partnerships with Fireblocks and Circle to create a product and flow-of-funds that enables Neobanks and Fintech institutions.
Current CTO, Trevor Marshall, commented on the new initiative by Compound Labs, saying,
“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.”
Vision Behind Compound Treasury
The vision behind Compound Treasury was to enable the non-crypto financial institutions to benefit from the many use-cases of DeFi and offer more quality services to their large userbase.
Compound Treasury would empower USD-centric financial institutions interested in secure, flexible access to fixed high-yield interest rates, benefiting either themselves or the end-users.
Compound Labs also clarified that the Treasury initiative has been in the works for months, following exhaustive research on customer and regulatory compliance. They also announced that the client onboarding process has already begun, with plans to expand access to Treasury accounts shortly.
According to Calvin Liu, Strategy Lead at Compound Labs,
“Our 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.”
Compound Treasury Focuses on Customer Experience
The product and the flow of funds devised after months of research have a distinct customer focus. Compound Labs have further elucidated the straightforward plan that clients can follow without dealing with protocol-related complexities. Customers can start earning immediately after wiring funds in USD directly to the Compound Treasury Account at a fixed interest rate of 4% p.a. They can also fund and withdraw from their account any time, with a 24-hour turnaround. Furthermore, the absence of fixed terms, deposits with low minimums and no upper limits, and on-demand auditable balance statements provide the customers with even more flexibility and control.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.