Curv, the crypto custody startup, is using the Compound protocol to help institutions earn passive income on their crypto assets. The startup has gained popularity among asset managers, exchanges, and other institutional clients. However, as of now, only deposits are made possible on the platform, and Curv said that as it reaches more people, it would add borrowing of crypto assets as well.
Curv integrates Compound protocol in its platform, which allows these institutional investors and hedge fund managers to lend their crypto assets and use smart contracts to earn passive income or withdraw loans in any ERC-20 tokens.
Josh Schwartz., Curv Chief Operating Officer, commented on their decision to integrate Compound in their platform and said:
“We got requests for it maybe about two, two-and-a-half months ago. The Compound is the first DeFi integration. They’ve seen a lot of growth lately, and they lead the way with 40% of DeFi value locked up in their protocol. Compound has a long list of institutions who would love to interact with them but need a secure stack to do so.”
The COO also highlighted that they had to build a separate policy engine to integrate Compound’s Ethereum-based smart contracts on its platform.
Curv is currently in an expansion mode and opened its first office in Asia in April of this year with an office based in Hong Kong in association with Japan-based Crypto Garage. The firm also raised $23 million in Series A funding round, which attracted investment from the likes of Coinbase Ventures and the investment arm of Germany’s Commerzbank.