Aave, a decentralized lending platform, has launched a licensed lending and liquidity service, Aave Arc, to help institutions participate in compliant decentralized finance.

Unlike the unlicensed cross-chain counterparts on the platform, Aave Arc is a licensed liquidity pool designed specifically for institutions to maintain regulatory compliance in the field of decentralized finance (DeFi).

The first of the 30 entities on the Aave Arc whitelist is Fireblocks, the institutional digital asset custodian.It’s on January 5th announcement The pool “enables whitelisted institutions to safely participate in DeFi as liquidity providers and borrowers.”

Aave Arc users must perform due diligence procedures, such as Know Your Customer/Anti-Money Laundering (KYC/AML) in order to gain access.

Fireblocks also acts as a whitelisting agent for Aave Arc, ensuring that other organizations wishing to join the permission pool implement KYC/AML requirements. Aave itself cannot perform this task because it is not a regulated entity, such as a bank or other traditional financial institution.

As a whitelist agent, Fireblocks has approved “30 licensed financial institutions to participate in Aave Arc as suppliers, borrowers, and liquidators.”

The whitelisted entities include Anubi Capital, Canvas Digital, CoinShares, GSR and Celsius, a cryptographic revenue aggregator.

Related: SBF is “optimistic” about adopting institutional cryptocurrency in 2022

Aave’s new licensed liquidity pool is designed to allow more institutions to join the emerging DeFi field, and as of this writing, the total value lock (TVL) in this field is $133 billion.According to statistics, TVL has increased 4.5 times since January 10, 2021 Application radar.

Although the agency Start buying cryptocurrency In the growing part of 2021, most people are still uneasy about getting involved in DeFi due to compliance barriers and regulatory uncertainty.