Fireblocks Adds Support To This Altcoin: $500M Investment

  • Crypto services provider Fireblocks after rising institutional demand for decentralized finance (DeFi) Terra (Luna) added support to the blockchain. Institutional investors are reportedly pouring over $500 million in the first week since the integration began.

Leading crypto infrastructure and technology company Fireblocks has announced that it is the first platform on Terra, the second largest DeFi ecosystem by total crypto value locked, to provide institutional customers with secure access to decentralized finance; This means that their customers can now access Terra-based DeFi applications such as lending protocol Anchor and liquidity staking protocol Lido.

Institutions flock to popular altcoin

Fireblocks CEO Michael Shaulov said that in the first week of integration, customers poured about $500 million into such protocols on Terra.

Fireblocks, a crypto infrastructure provider specializing in Custody solutions, announced on Tuesday that it has integrated Terra with its enterprise DeFi platform. Institutional investors such as integration, venture capital firms and hedge funds; It allows them to earn high returns by borrowing, lending or providing liquidity on Terra’s top DeFi protocols such as Anchor, Lido and Astroport.

According to the press release, the company’s early access program experienced “record demand”, with customers distributing more than $250 million in the first three days after the integration went live on April 18. Fireblocks CEO Michael Shaulov said that this amount has now increased to over $ 500 million and added:

“Enterprise demand for DeFi continues to grow and it is critical for the company to provide enterprises with secure, scalable and simple access to new markets such as DeFi on Terra.”

defiance

Why are enterprises interested in DeFi?

Shaulov said institutional investors benefit from access to DeFi markets as they offer new return-generation opportunities not found in traditional markets and assets.

Shaulov said that users can also create new products and services for their customers and generate income using the Fireblocks infrastructure.

Terra support comes three months after Fireblocks added support for Solana. Shaulov said the firm aims to support “every major DeFi ecosystem” in the months and years to come.

Fireblocks is a platform backed by notable investors such as Sequoia Capital, Paradigm, Ribbit Capital, and Bank of New York Mellon. The firm recently raised $550 million at a valuation of $8 billion in its Series E round.

With many professional investors entering the space through Fireblocks, Terra’s flagship decentralized app is likely to come under even greater pressure to maintain the promised and heavily marketed 20% interest rate on UST deposits. But if Anchor fails to maintain its compelling offering, the Terra ecosystem is likely to face a bad scenario, including a significant capital outflow to other ecosystems and a potentially destabilizing “bank run” on the UST stablecoin.

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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.

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