Channeling corporate and institutional funds! Compound's new platform promotes mainstream adoption, COMP token skyrocketing in volume.

According to ChainNews' previous report, the President of the Federal Reserve Bank of Boston warned that stablecoins could disrupt the short-term credit market. Less than a week later, Compound, a veteran decentralized finance (DeFi) protocol in the Ethereum ecosystem, announced the launch of a savings product based on stablecoins for large USD holders, indirectly challenging the market dominance of money market funds.

Compound Treasury

Compound is a decentralized lending protocol on the Ethereum ecosystem, second only to Aave, with smart contracts custoding over $11 billion in crypto assets. Since its launch in 2018, it has been used by hundreds of thousands of users. Its collateral liquidation mechanism has proven its security and feasibility through numerous market pressures of extreme volatility.

Today, the protocol announced a partnership with Fireblocks and Circle to launch a new product tailored for Neobanks, fintech startups, and other large USD holders called Compound Treasury.

Compound Treasury is a new platform that streamlines the on-chain transaction process, allowing large USD holders to access Compound's lending services without barriers. Users only need to deposit USD into Compound's Treasury account, which will automatically convert the USD to USDC and start earning a fixed interest rate of 4% annually. Throughout the process, users can avoid many complexities of DeFi protocols, including private key management, fiat-to-crypto conversions, interest rate fluctuations, and more.

Although Compound Treasury is a relatively centralized solution, it offers high interest rates and convenience that most USD savings accounts in the financial market cannot provide. According to Compound's press release, users can earn a 4% annualized return while enjoying features such as 24/7 withdrawals, no investment limits, no lock-up periods, and high flexibility. Additionally, as Compound Treasury is a centralized asset management platform, the team also promises to provide detailed and auditable financial statements on a monthly and on-demand basis.

Current, a U.S. fintech company, is one of the partners of Compound Treasury. Trevor Marshall, the company's CTO, commented in the press release:

"As a fintech company focused on building engaging and empowering products, we have been looking for more ways to provide added value to our customers. By partnering with Compound Treasury, we will be able to give our customers access to the protocol through a simple and consistent experience, enabling more people to improve their financial outcomes."

In the past 24 hours, Compound's governance token COMP has surged by approximately 26%, making it the highest gainer among DeFi tokens on Binance exchange.