Aave has announced the launch of its permissioned lending and liquidity service, Aave Arc, adding another service for institutions. The addition of Aave Arc will enable institutions to participate in decentralized finance (DeFi) that is compliant with all regulations.
Aave had first revealed details about the platform in July of last year.
A Regulatory-Compliant DeFi Ecosystem
Aave Arc is designed for institutions that wish to participate in Decentralized Finance and be sure that they do not fall foul of any compliance issues. Aave Arc will enable these parties that have undergone financial due diligence to borrow and lend cryptocurrencies to other compliant parties.
Aave Arc functions exactly how Aave’s main protocol functions, with the only difference being that only approved parties can participate on Aave Arc. Speaking about the launch of Aave Arc, Founder, and CEO of Aave, Stan Kulechov, stated,
“DeFi represents a powerful wave of financial innovation including transparency, liquidity, and programmability–and it’s been inaccessible to traditional financial institutions for far too long. The launch of Aave Arc allows these institutions to participate in DeFi in a compliant way for the very first time.”
Fireblocks Is Aave Arc’s First Whitelister
Fireblocks has also announced that it is Aave Arc’s first whitelister, and will be running due diligence on any institution that is planning on lending or borrowing crypto assets through Aave Arc. Fireblocks revealed the news in an announcement through its website and will enable all participating institutions to be compliant with KYC and AML regulations.
Over 30 Institutions Set To Join
At the time of launch, Fireblocks has whitelisted 30 institutions that are set to join Aave Arc. These institutions include Bluefire Capital, Celsius, CoinShares, Seba Bank, GSR, Ribbit Capital, QCP Capital, and Wintermute.
Co-founder and President of GSR Rich Rosenblum called Aave Arc’s launch a pivotal movement in DeFi, stating,
“The launch of Aave Arc is a pivotal moment in DeFi. As a result of Fireblocks making institutional access to DeFi pools possible, companies like ours are able to create new products for our customers.”
More Entities Express Interest
While Fireblocks has secured its position as the first whitelister on Aave Arc, several others have expressed keen interest and are expected to join the platform as whitelisters. Aave’s governance forum has already received a proposal from Securitize for it to become Aave Arc’s next whitelister. CEO Stani Kulechov, spoke about adding additional whitelisters to Aave arc, stating,
“Additional whitelisters for Aave Arc will help facilitate market participants’ choice of onboarding onto Aave Arc via one or more whitelister.”
