- Aave finally launched its DeFi authorization pool, Aave Arc, aimed at institutional investors and regulated financial institutions.
- The group will have 30 institutions at launch, with Fireblocks as a whitelisting agent and new members such as Celsius, CoinShares and GSR.
The era of decentralized regulated institutional finance (DeFi) is finally here, and Aave is leading this exciting new frontier. Aave has finally announced the launch of Aave Arc, a liquidity and loan service licensed by DeFi. At launch, there will be 30 participating institutions, including the pioneering Fireblocks and others such as Celsius and Anubi Capital.
In an announcement made on 5 January, Aave described Arc as “DeFi’s liquidity market designed to comply with anti – money laundering regulations, in which all participating institutions are required to undergo Know – How verification. Customer (KYC) ».
Arc will ultimately allow institutional and regulated entities to securely participate in DeFi as liquidity providers and lenders.
Fireblocks was actively involved in bringing Arc to life. The New York-based curator of digital assets for institutional players is the first white list on the platform. It was also tasked with developing a framework to include other interested institutions. It will perform all necessary client information (KYC) checks to ensure that institutions comply with global FATF guidelines.
At launch, Fireblocks has already approved 30 new institutions participating in the Aave Arc ecosystem since its launch. These include UK-based digital asset investment firm CoinShares, cryptocurrency trading company and liquidity provider GSR, cryptocurrency lending platform Celsius, subsidiary Galaxy Digital Bluefire Capital, and cryptocurrency company VC Hidden Road. Ribbit Capital, an early investor in Balance, Xapo, and Credit Karma, are also among the 30 companies on the white list.
As we reported, the Swiss bank also applied SEBA to enter the ecosystem.
“The Fireblocks approach is government approved by the Aave protocol and all future whitelister institutions will be required, if the government approves the Aave protocol, to meet or exceed these standards,” Aave said.
Turning DeFi into a $ 1 Trillion Industry with Aave Arc
Aave Arc could be the start of an exciting new frontier in the cryptocurrency industry. So far, DeFi has exploded, except through retail investors. According to data from DeFiLlama, at press time, $ 242 billion is locked up in DeFi. This figure has increased tenfold compared to a year ago, when it did not reach $ 25,000 million.
But still, the room for growth is huge. With a total cryptocurrency market capitalization of more than $ 2 trillion, DeFi is still able to attract a lot of funding, both inside and out.
Institutional players could be a piece of the DeFi puzzle that accelerates the growth of the sector and allows it to surpass the trillion dollar mark.
Stani Kulechov, founder and CEO of Aave, said:
DeFi represents a powerful wave of financial innovation including transparency, liquidity and programmability, and has long been inaccessible to traditional financial institutions. The launch of Aave Arc allows these institutions to participate in DeFi in a compliant way for the first time.
Participating in Aave Arc is very easy. Institutional activists only need to request access, undergo KYC verification at Fireblocks, and then proceed to access Arc through DeFi Fireblocks gateways.