фото показано с : invezz.com

Aave, one of the leading decentralized lending platforms, has announced the launch of Aave Arc, a permissioned lending and liquidity service. This new protocol is geared towards institutional players allowing them to engage in decentralized finance (DeFi) in a regulation-compliant environment.

Aave Arc will operate differently from the other permissionless cross-chain counterparts on the network. Aave Arc will be a permissioned liquidity pool designed specifically for institutional players looking for regulatory compliance in the DeFi sector.

Around 30 institutions have already lined up for Aave Arc. One of these institutions is Fireblocks, a digital asset custodian.

In an announcement on January 5, Fireblocks noted, “we’re excited to announce that Aave Arc, the new permissioned DeFi liquidity pool for financial institutions, is now live with Fireblocks as the very first active whitelister for the protocol.” Fireblocks also adds that Aave Arc will be “compliant with AML regulations.”

The institutions that want to use Aave Arc have to fulfil a Know-your-Customer verification process and meet anti-money laundering requirements.

Fireblocks will be a whitelisting agent for Aave Arc to ensure the other institutions that want to join the service fulfil the required obligations. Aave cannot ensure such compliance because it is not a regulated financial institution like a bank.

As a whitelisting agent for the platform, Fireblocks has already approved “30 licensed financial institutions to participate on Aave Arc as suppliers, borrowers, and liquidators.” Some of the institutions that have already been whitelisted include Anubi Capital, Canvas Digital, Celsius, Coinshares and GSR.

Over the past year, there has been an influx of institutional players in the crypto sector. However, the DeFi sector has not received much support because of regulations and compliance constraints.

The new product by Aave seeks to address this limitation and ensure that institutional players can venture into the DeFi scape as they did in the crypto space. The protocol seeks to bring a boom to the DeFi total value locked. At the time of writing, the DeFi TVL stood at $133 billion, showing an almost five times growth over the past year.

The post Aave seeks to attract institutions to DeFi with Aave Arc appeared first on Invezz.

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