This article comes fromThe Block, original author: Yilun Chen

Odaily Translator |

Odaily Translator |

• Fireblocks, a blockchain company designed to secure the transfer of encrypted assets, has integrated with DeFi platform Compound, allowing its customers to earn interest through Compound's lending protocol.

Odaily Note: In June last year, Fireblocks announced the completion of a US$16 million Series A round of financing. Investors include cybersecurity-focused venture capital fund Cyberstarts, venture capital firm Tenaya Capital, and Fidelity’s investment arm Eight Roads.

According to a press statement shared with the press on Tuesday, Fireblocks customers can now deploy assets stored in Fireblocks’ “Hot Vault” to Compound and begin earning passive income.

It is reported that Fireblocks uses secure multi-party computation (MPC) to protect the transfer of user assets. Traders can store their assets in Fireblocks "hot storage" and transfer funds between wallets normally.

Kevin Yedd-Botton, head of ParaFi, an investment firm focused on DeFi, one of Fireblocks' clients, commented on the new feature that investors must currently use a Web-3 wallet such as MetaMask or a hardware wallet to access Compound, etc. platform, which is not ideal for institutional traders.

Yedid-Botton explained: "If you're a retail investor investing only a few thousand dollars, that's fine. But if you're responsible for a lot of money, you definitely don't want to put a number in your MetaMask wallet." Millions of dollars just to interact with Compound."

Another Fireblocks client, Tiantian Kullande, co-founder of cryptocurrency finance firm Amber Group, agrees with Yedid-Botton on this point.

Kullande said: "For most people, it is difficult to imagine that someone can manage a key MetaMask plugin, and then trade multi-million dollar company assets. I think most exchanges and OTC trading institutions are using it now. Fireblocks, because it allows you to move funds using MPC, where the keys are created separately, so there is no key person risk. The integration of Fireblocks with Compound could allow institutions to integrate with a pure DeFi platform, which fills the gap we currently have The market you see is blank."

However, Kullande also admitted that due to the current low interest rate level of Compound itself, Amber Group may not use this new feature of Fireblocks. Currently, the 30-day average interest rate for lending ETH on the Compound protocol is only 0.01%.