In Brief:
- Aave Arc gets ready for its first deployment with Fireblocks.
- Fireblock will work as a gatekeeper ensuring that only whitelisted participants can get involved.
- Aave Arc, an implementation of the Aave version 2, is designed to allow institutions to enforce regulatory compliance
Aave Arc, a permissioned version of the popular DeFi lending platform Aave, gets ready for its first deployment.
Fireblocks, an institutional custody firm, has made a proposal to the Aave Governance forum for it to be the first whitelister for when it is deployed.
Rob Salman, the head of business development at Fireblocks, submitted the proposal, stating, “Fireblocks’ R&D, compliance and legal teams have developed a new whitelister framework for permissioned DeFi. This framework meets both enterprise-grade requirements for accessing DeFi and adheres to Aave Arc’s whitelister governance criteria.”
Aave Arc is an implementation of the Aave version 2 that is designed to allow institutions to enforce regulatory compliance. Whitelisters would ensure that users of these permissioned lending pools comply with relevant laws depending on the jurisdiction of the user.
If it gets approved, Fireblock will lead the way towards integrating new products and services such as “the onboarding of regulated fiat on/off ramps and protocol deployment connected to debit cards, high yield saving accounts and other innovative fintech products,” the proposal said.
Fireblocks will play an essential role in onboarding institutional investors to the protocol. It will act as a gatekeeper of sorts, ensuring that only whitelisted participants – “who have gone through KYC process” – can get involved.
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Fireblocks can bring many benefits to Aave as they can aid in “the creation of sustainable governance practices for Aave Arc whitelisters and whitelister customers.”
Participants will be only able to borrow from and lend to other whitelisted participants. This signifies that it is better for those companies with a “precise set of regulatory requirements to get involved.
