Compound Treasury debuts crypto-backed loans for institutional clients

Quick Take

  • Compound Treasury will accept bitcoin, ether, and supported ERC20 tokens as collateral for the loans.
  • The crypto loan service comes months after Compound Treasury secured a credit rating from S&P.

Compound Treasury, an institutional DeFi yield platform backed by the Compound Finance protocol, says it can now offer over-collateralized crypto-backed loans to accredited institutional clients, the firm announced on Wednesday.

Clients can now borrow US dollars or USD Coin (USDC) from the platform using bitcoin, ether, and supported ERC20 tokens as collateral. The loans have open-ended tenures, which means there is no set repayment timetable. 

As such borrowers will have some flexibility in servicing their debt positions as long as their loans are overcollateralized. Borrowing on the platform will attract a 6% interest rate.


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The liquidity to support these loans will come from both the platform’s clients and the Compound DeFi protocol. Institutional clients already earn up to 4% yield on Compound Treasury. According to the announcement, the crypto collateral put up by borrowers will remain in the platform's wallet for increased transparency.

Compound Treasury became the first DeFi-backed firm to receive an S&P credit rating, as reported by The Block in May. The firm secured a B-rating at the time.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Osato is a news reporter at The Block as part of the crypto ecosystems team that focuses on DAO governance, staking, blockchain layers, and DeFi. He was previously a news reporter at Cointelegraph. Based in Lagos, Nigeria, he enjoys crosswords, poker, and attempting to beat his Scrabble high score. Follow him on Twitter at @OsatoNomayo.