certify
Home arrow Article arrow Article Detail

Compound Treasury: Digital Assets Can Be Used as Collateral for Borrowing USD or USDC

Profile Image

Pavan A Follow

INDIA

Sep, 16 2022

Sep, 16 2022

likes | comments 0

Article Image

A cash management solution powered by the Compound Protocol, Compound Treasury, announced on September 14 that it would offer institutions fixed interest rates starting at 6% APR for USD or USDC loans. As collateral, accredited institutions can use Bitcoins (BTC), Ethers (ETH), and supported ERC-20 assets.? 

 

The crucial aspect of institutions in the crypto space is that they bring high volumes and inflows to the crypto space, while also making crypto more credible. There have been a significant number of companies catering to these institutions as a result of their significant growth. 

 

Crypto companies, FinTech institutions, and banks are among the notable clients of Compound Treasury, who were influenced by recent market volatility.? 

 

Compound Treasury's vice president, Reid Cuming, explained, “Compound Treasury can now address the 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." 

 

Providing clients with flexible borrowing, the company said, as long as they remain over-collateralized, the terms will remain open-ended. As a result, Compound Treasury will maintain control of collateral provided by borrowing institutions, increasing transparency and security. 

 

Another Compound Governance company offering lending and borrowing, Compound Finance, has seen investors' interest drop in recent years. Since November 2021, bearish market conditions have led to a decline of $2.65 billion in deposits and -$358 million in loans on the protocol.? 

 


likes | comments 0

Profile Image

Pavan A

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
Innovative Bitcoin Tool Empowers Billions of Companies with Lightning-Fast BTC Payments, Revolutionizing the Trillion-Dollar Market

The LINER (Lightning Index Rate) index is a cutting-edge tool that Amboss, a well-known Lightning data provider, has released in a bid to spur business adoption of Bitcoin's Lightning Network.;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.