Custody startup Curv is using the leading lending protocol in decentralized finance (DeFi) to help institutions that want to earn money on idle crypto.
By way of the Compound protocol, Curv is offering its service to asset managers, exchanges and other institutional clients. Only deposits will be supported for now, though Curv says there are plans to enable clients to borrow crypto assets through Compound in the near future.
âWe got requests for it maybe about two, two-and-a-half months ago,â said Curv Chief Operating Officer Josh Schwartz. âCompound is the first DeFi integration. Theyâve seen a lot of growth lately, and they lead the way with 40% of DeFi value locked up in their protocol.â
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Schwartz wouldnât comment on what Curvâs next DeFi integration would be, but to make Compound happen the company had to build a separate âpolicy engineâ that matched up with Compoundâs Ethereum-based smart contracts.
â[Compound] has a long list of institutions who would love to interact with them but need a secure stack to do so,â Schwartz said.
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Curv is a custody startup that specializes in multi-party computation. In April, the company expanded into Asia with an office in Hong Kong and a partnership with Japan-based Crypto Garage. Earlier this month, Curv announced a $23 million Series A funding round with backing from the likes of Coinbase Ventures and the investment arm of Germanyâs Commerzbank.
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