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On January 5, the open source non-custodial decentralized financial (defi) lending platform Aave launched a license version agreement for institutions. The platform called Aave Arc will use Fireblocks as the first whitelist because the platform is designed to help traditional financial institutions establish connections with defi.
KYC-centric Defi liquidity: Aave launches Aave Arc license agreement for financial institutions
Aave A licensing platform called Aave Arc was launched on Wednesday. This is a new agreement for financial institutions that want to participate in defi in a compliant manner. Aave is a popular defi lending platform. The defi protocol has the third largest total value lock (TVL) today. Indicators show that Aave has $14.52 billion in TVL, distributed on three blockchains, including Ethereum, Avalanche and Polygon.
Crypto Custody Company Fire block 30 financial entities have been approved to join Aave Arc. The list includes companies such as Ribbit Capital, Coinshares, Hidden Road, Wintermute and Celsius. Aave announced the Aave Arc concept in July 2021 and released it in mid-November Disclosure Fireblocks is the first whitelist. The defi startup also explained how Aave Arc will work, and explained that defi “cannot be accessed by traditional financial institutions.”
“Aave Arc is a licensing market based on the Aave V2 market,” Aave Say then. “In the spirit of innovation and experimentation, Aave Arc created a Web3 native experience for financial institutions to leverage the power of defi in a licensed sandbox environment.” defi started adding:
Loyal to the values ??of defi, Aave Arc aims to be completely decentralized and managed by Aave Governance. Aave Protocol Governance can appoint or delete KYC and the “whitelist” of institutions and companies that have joined Aave Arc.
Whitelister Fireblocks envisions “Institutional interest in cryptocurrencies will accelerate in 2022”
Essentially, the new platform allows traditional financial companies to participate in the Aave system, but utilize a licensed liquidity pool. Cryptocurrency custody company Fireblocks believes that more institutions will accept cryptocurrencies, and this belief is the company’s highest forecast for 2022. “Institutional interest in cryptocurrencies will accelerate in 2022,” Fireblocks said in a statement Blog post.
The Fireblocks 2022 forecast post added: “This adoption will gain more momentum from the development of post-trade infrastructure currently implemented across the market.”
Aave’s native encrypted asset aave (AAVE) has a market value of approximately US$3.47 billion on January 5, 2022, and a global transaction volume of US$294 million. Weekly statistics show that AAVE has risen by more than 1%. Two-week indicators show that the asset has risen by 38.1%. So far this year, AAVE has risen by 135%.
What do you think of the licensed defi platform Aave Arc? Please tell us your thoughts on this topic in the comments section below.
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