Compound Treasury to allow institutions to use digital assets as collateral when borrowing in USD or USDC

Compound Treasury, a cash management solution for institutions powered by the Compound Protocol, announcement September 14, accredited institutions can now borrow USD or USDC with fixed rates starting at 6% APR, using Bitcoin (BTC), Ether (ETH), and supported ERC-20 assets as collateral.

The DeFi-backed company, whose notable clients include crypto firms, fintech institutions and banks, said the decision was made in response to recent market volatility, which has created more robust demand for liquidity.

Reid Cuming, Vice President of Compound Treasury, said: “Compound Treasury can now meet the demand for liquidity with a simple and reliable borrowing solution, while continuing to provide the same trusted service we have provided to clients. earning interest over the past year. He added:

“The introduction of the loan expands our cash management product to meet more of our clients’ needs.”

In an official statement, the company said borrowings for customers will remain flexible, with “an indefinite term” and “no repayment schedule”, as long as participating customers remain oversecured. Collateral provided by borrowing institutions should not leave Compound Treasury’s control, increasing transparency and security of funds.

Liquidity for the program will be provided by customers of Compound Treasury and Compound Protocol, which currently has over $3 billion in assets and has acquired over $285 billion in total trading volume since the company began trading. function.

This announcement from Compound Treasury comes after the company received a B- credit rating from S&P Global in May 2022, making the company the first of its kind to receive a credit rating from a major agency.