Compound Treasury to allow institutions to use digital assets as collateral when borrowing in USD or USDC

Accredited institutions can borrow USD OR USDC from 6% APR, depending on the company.

Compound Treasury, a cash management solution for institutions powered by the Compound Protocol, announced on September 14 that accredited institutions can now borrow USD or USDC with fixed rates starting at 6% APR, using Bitcoin, Ethereum and ERC supported. 20 assets as collateral.

As of today, to meet the growing demand for liquidity, institutions can now borrow from Compound Treasury, using digital assets as collateral.https://t .co/xgDIep18Qa

The Defi-backed company, whose notable clients include crypto firms, fintech institutions and banks, said the decision was made in response to recent market volatility, which has created demand more robust liquidity.

Reid Cuming, Vice President of Compound Treasury, said, "Compound Treasury can now meet the demand for liquidity with a simple and reliable borrowing solution, while continuing to provide the same reliable service as the one we've provided to customers who are earning interest over the past year." He added:

"The introduction of the loan expands our cash management product to meet more of our clients' needs."

In an official statement, the company announced that borrowing for customers will remain flexible, with “an indefinite term” and “no repayment schedule,” as long as participating customers remain oversecured. Collateral provided by borrowing institutions should not leave Compound Treasury's control, increasing the transparency and security of funds.

Cash for the program will be provided by customers of Compound Treasury and Compound Protocol, which currently has over $3 billion in assets and over $285 billion in total trading volume since the company began to work.

This announcement from Compound Treasury comes after the Defi-backed company received a B- credit rating from S&P...