Institutional Investors Could Soon Enter DeFi Through “Aave Pro”

Decentralized loan protocol Aave plans to launch “Aave Pro,” a licensed platform for institutional investors later this month, according to a new report from Cointelegraph. The platform, which will provide the same types of services as Aave’s current platform, will be launched in collaboration with digital platform Fireblocks on security and compromise.

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The new platform was reportedly announced at a webinar titled “Next Steps in Institutional DeFi,” which featured Stani Kulechov, Michael Shaulov and Mike Novogratz, who are the heads of Aave, Fireblocks and Galaxy Digital, respectively.

According to a screenshot of an email that reportedly summarizes the content of the website, Aave launches Aave Pro in response to “extensive demand from various institutions.” The platform will only support four cryptocurrencies at its inception: BTC, ETH, AAVE and USDC. Aave Pro’s pools will also remain separate from its main platform. The email also said there are plans to eventually decentralize the management of Aave Pro.

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For those who didn’t attend the “NEXT Steps in Institutional Challenge” Zoom with Stani, here’s a summary email I received. pic.twitter.com/ClwlBkXh2r

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Additionally, Aave Pro will add a whitelist layer to Aave V2’s smart contracts to ensure that only “institutions, companies and technologies” approved by the Fireblocks verification process can access the platform. Fireblocks is also responsible for Aave Pro’s anti-money laundering and anti-fraud controls.

Aave Pro is projected to expand the total value locked into the Aave ecosystem, which is currently around $ 17 billion.

DeFi “rails” for institutional investors

According to CoinTelegraph, the announcement of the new platform received “mixed reactions” on Twitter. Some enthusiastic users have pointed out that the platform will serve as a railroad for institutions to enter the DeFi world in a meaningful way for the first time.

Others, however, pointed to an ongoing lawsuit against Fireblocks by interested provider StakeHound. The lawsuit was filed for alleged removal of private keys to a wallet that contained $ 72 million in ETH.

Aave first announced it was entering the institutional world in May, when Stani Kulechov said Aave had created a “private pool” for institutions to “practice” before jumping headfirst into DeFi. Aave has also partnered with Compound in early 2020 to launch DeFi services for institutional investors.