DeFi protocol developers Aave will launch a managed version of the platform for institutional investors this month in partnership with crypto custodian and service provider Fireblocks.
Over the weekend, social media user Twitter TraderNoah shared a screenshot of an email he received after attending Blockworks’ Next Steps Towards DeFi Institutional Webinar. The webinar was attended by Stani Kulechov, CEO of Aave Lending Protocol, Michael Shaulov, CEO and co-founder of Fireblocks, and Mike Novogratz, CEO of Galaxy Digital.
The email summarizes the conference and says that the institutional product, Aave Pro, will launch this month in response to “strong demand from various organizations.” At launch, Aave Pro will support four assets – BTC, ETH, AAVE and USDC, with its pools separate from other Aave deployments.
The platform will add a “whitelist” layer to its V2 smart contracts to ensure that Aave Pro is only accessible by “institutions, corporations and fintech companies” that have passed KYC validation from Fireblocks. Fireblocks will also be implementing anti-money laundering and anti-fraud measures for Aave Pro. In addition, the email outlines plans to decentralize Aave Pro’s governance in the future.
In May, Kulekhov first announced that Aave was creating a managed pool for institutional investors. The post on Twitter caused a mixed reaction from the community, with some highlightedthat the platform provides institutions with the opportunity to start active engagement with decentralized finance.
Other users expressed concerns regarding the involvement of Fireblocks in the operation of the platform, given that the Swiss staking platform StakeHound recently filed a lawsuit against the company, accusing it of losing 38,178 ETH due to the loss of private keys.
As a reminder, in June, cryptocurrency lending service BlockFi launched BlockFi Prime, a trading platform for institutional investors and high net worth clients.
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