Crypto

Compound Pivots to Institutions in Bid for Relevance

Guavy AI Editorial Team Published August 18, 2026

Compound Finance has announced a major pivot towards attracting institutional investors as DeFi demand wanes. The protocol's leadership has been overhauled, and it has approved a $52 million budget for development in an effort to bring real-world assets on-chain.

The move comes as Compound's total value locked (TVL) has fallen to about $1.2 billion from its peak of $12 billion in September 2021. Despite this decline, the protocol remains one of the largest DeFi lenders, having processed over $480 billion in deposits and borrowing since its launch in 2018.

Aaron Schnarch, former CEO of Coinbase Custody, said that institutional adoption has been limited by gaps between DeFi products and traditional finance standards. Compound plans to address these gaps through stronger compliance and technical infrastructure.

Compound Pivots to Institutions in Bid for Relevance

SEC Clears Blockchain, Others for Crypto Regulation in Nigeria's Accelerated Sandbox

Gen Z Flocks to Binance ETFs as Equity Trading Habits Shift

Binance Faces Backlash for Sharing Customer Data with Russian Authorities