Covario granted access to permissioned DeFi Aave Arc, as one of 30 ‘whitelisted’ by Fireblocks
For Immediate Release
Switzerland /New York— Covario AG is now one of 30 firms licensed by Fireblocks to join Aave Arc, a regulatory-compliant DeFi market for institutional-level investors.
Florian Giovannacci, Head of Trading at Covario, commented: “Through this trusted partnership with Fireblocks, Covario’s long-time solutions provider, we are delighted to now participate in Aave Arc for lending and borrowing cryptocurrencies on behalf of our clients in a permissioned DeFi environment with the assurance of institutional-grade security measures.”
Aave Arc offers ‘bank-friendly DeFi’
Aave Arc, the new permissioned DeFi liquidity pool, enables regulated institutions to access DeFi with peace of mind by ensuring that all of its ecosystem participants are compliant with AML regulations and Know Your Customer (KYC) verification.
Only approved entities who have undergone specific financial due diligence are allowed to borrow and lend on Aave Arc — marking a contrast to the typically pseudonymous environment of DeFi.
Fireblocks, as a multi-party computation (MPC) specialist and the first active whitelisting partner for Aave Arc, has granted Covario exclusive membership of Aave Arc.
What does this mean for Covario’s clients?
Covario’s partnership with Fireblocks enables clients access to a permissioned DeFi environment, which means even the most strictly regulated enterprises can now participate with the assurance that all counterparties are AML compliant and KYC/KYB verified.
The new offering is integrated seamlessly to Covario’s existing solutions.
Future of DeFi and institutional investors
The DeFi market has remained largely untapped by institutions, due to the lack of institutional-level support in risk management and KYC/AML requirements. With the introduction of permissioned markets, DeFi will operate one step closer to traditional finance markets, where counterparties are approved by a KYC process.
Fireblocks’ whitelisting licenses open new possibilities for institutions looking at DeFi, potentially unlocking a trillion-dollar opportunity.
The 30 licensed financial institutions approved by Fireblocks also include: Anubi Capital, Bluefire Capital (acquired by Galaxy Digital), Canvas Digital, Celsius, CoinShares, GSR, Hidden Road, Ribbit Capital and Wintermute.
As mentioned on Coindesk, Blockworks, Cointelegraph
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About Covario AG
Covario is a Swiss-based Digital Asset Prime Brokerage founded in 2019. Covario’s Prime Brokerage platform is a holistic solution for digital asset trading, algorithmic trading, clearing, financing and custody for institutional clients. Backed by a team of professionals with deep experience and understanding of institutional financial services, Covario’s offering combines asset protection and global reach with operational ease and efficiency. Visit: www.covar.io