Decentralized finance (DeFi) money market platform Aave has launched a permissioned lending and liquidity service called Aave Arc to help institutions participate in decentralized finance while maintaining regulatory compliance.
Aave Arc is a permissioned liquidity pool specifically designed for institutions to maintain compliance. The first of 30 entities in the whitelist for Aave Arc was Fireblocks, an institutional digital asset custodian.
The firm explained the pool “enables whitelisted institutions to securely participate in DeFi as liquidity suppliers and borrowers.” Aave Arc users must go through due diligence procedures to gain access, including know-your-customer and anti-money laundering checks.
Fireblocks also serves as a whitelisting agent for Aave Arc, ensuring institutions go through these checks. It has already approved 30 financial institutions to participate “as suppliers, borrowers and liquidators.” These include Anubi Capital, Celsius, Canvas Digital, GSR, and CoinShares.