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Coinbase Custody has stated that it will add support for the newly announced Compound Governance protocols which aims at moving towards a decentralized finance model.
As the crypto industry continues to drive institutional interest, Coinbase is working on strengthening its Coinbase custody platform. On Thursday, April 16, Coinbase Custody announced support for Compound, an open finance money market protocol.
This announcement from Coinbase Custody comes on the sidelines of Compound announcing its new governance protocols. With this Compound will be working on a more decentralized nature of governance through its token-based model.
Since its inception in late 2018, Compound has seen a relatively faster rise in the market. Last November 2019, Compound receive $25 million in Series A funding. As per Loanscan, Compound is currently the second-most-popular decentralized finance (DeFi) protocol. Controlling with over $100 million worth of assets, institutional investors view Compound as the pillar of decentralized finance.
Earlier this year in February 2020, said that the token-based decentralized process shall be gradual. The Compound Governance will run using the COMP tokens. As per the Compound team, the Compound Governance system is already live. In its official announcement, Coinbase wrote:
“Coinbase Custody is currently the only custody provider and the only in-app voting experience for Compound, furthering our commitment to enabling access to the crypto economy. Our offering will build on our battle-tested, institutional-grade cold storage solution to provide a secure and seamless way for our clients to govern Compound, an interest rate protocol that has seen explosive growth since its launch in late 2018”.
Providing Fully Integrated Solutions with Enhanced Security at Coinbase Custody
Coinbase Custody said that it will be offering a fully integrated solution in their existing web application. Thus, it will allow its clients to view and vote on Compound Governance Proposals in addition to delegating governance rights to third parties.
Apart from supporting Compound Governance and COMP tokens, Coinbase Custody will also allow its clients to deposit and withdraw their Compound balances. This includes cETH, cZRX, cUSDC, cBAT, cDAI.
“Compound Governance was designed with institutional investors in mind; investors are able to participate in governance decisions, or delegate our votes to active community stakeholders, without our tokens leaving supported custody infrastructure, such as Coinbase Custody. It’s a preview of how DeFi applications will evolve into upgradable, permanent financial infrastructure over time,” explained Salil Deshpande, who was Managing Director at Bain Capital Ventures when the firm invested in Compound Labs.