Compound Unveils $52M Plan to Bring Institutional Credit On-Chain

Compound, a leading DeFi lending platform, has approved a $52 million two-year program to expand institutional credit and real-world assets on-chain. The initiative will focus on developing lending tools for banks, asset managers, exchanges, and fintech firms.

The program releases $14 million initially, with the remaining $38 million contingent upon development and adoption milestones. This investment will cover various aspects, including operations, engineering, security, governance, partnerships, growth, and incentives.

Compound aims to introduce support for real-world assets and lending tools that cater specifically to banks and other financial institutions. Since its launch in 2018, the platform has processed around $480 billion in deposits and borrowing volume.