Compound surged more than 23% in reaction to news of its new Treasury product. At the time of writing, Compound is trading at $325.18, after rising 13.32% over the last 24 hours.
Compound announced the new Treasury Accounts product on the 28th of July, with a goal to solve crypto challenges for non-crypto clients. Through the Treasury Account, non-crypto businesses and financial institutions will be able to enjoy the benefits of the Compound protocol. Also, the new product allows these clients to earn 4% annual percentage rate (APR) on fiat deposits from the Compound partnership with Fireblocks and Circle.
In the announcement, Compound said:
“We’re proud to announce Compound Treasury, designed for businesses and financial institutions to access the benefits of the Compound protocol. The idea is simple: a fixed 4% APR on US dollars, with daily liquidity and none of the complexity of crypto.”
Notably, the 4% earnings is more than what traditional banks offer on dollar savings accounts. Compound’s Treasury Accounts will convert the USD automatically to USDC which will then be supplied to Compound to generate a yield.
Compound Strategy Lead Calvin Liu commented on the newly-launched Treasury Account. Liu said that the vision is for Compound Treasury to link non-crypto clients “to deliver the core benefits of DeFi to the next billion users.”
Image Credits: Pixabay
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