DeFi Lending Startup Aave Launches Permissioned Platform to Induce Financial Institutions

Fireblocks, a cryptocurrency custody company, has accepted 30 financial institutions to join Aave Arc. Ribbit Capital, Coinshares, Hidden Road, Wintermute, and Celsius are among the companies on the list. Aave unveiled the Aave Arc concept in July 2021, and Fireblocks was confirmed as the first whitelister in mid-November. After clarifying that DeFi was inaccessible to traditional financial institutions, the DeFi startup also detailed how Aave Arc would work.

The DeFi startup added:

Essentially, the new platform enables traditional finance firms to engage in the Aave system while also utilizing a permissioned liquidity pool. Fireblocks, a crypto custody provider, expects that more institutions will embrace cryptocurrencies in 2022, and this is the company's top forecast. Institutional interest in crypto will accelerate in 2022, Fireblocks says in a blog post.

This adoption will gain more momentum from developments in post-trade infrastructure that are currently being implemented across the marketplace, Fireblocks 2022 prediction post adds.

Aave's native crypto asset, aave (AAVE), has a market capitalization of roughly $3.47 billion and a global trade volume of $294 million as of January 5, 2022. AAVE is up over a percent on a weekly basis, 38.1 percent on a two-week basis, and 135 percent on a year-to-date basis, according to statistics.