Institutional decentralized finance (DeFi) efforts gain momentum as Brevan Howard Digital invests $20 million in Kinto, accelerating the expansion of Kinto's DeFi solutions.
Kinto, an Ethereum layer-2 blockchain solution, is making waves in the financial industry by enabling traditional institutions to integrate digital asset products seamlessly, while adhering to regulatory standards.
According to Ramon Recuero, Kinto's co-founder and CEO, the platform offers a customizable, scalable, and secure blockchain environment. This environment embeds on-chain KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance tools at the protocol level, streamlining adherence to regulatory standards.
Kinto's focus is on smart wallets and DeFi (Decentralised Finance) applications, which can incorporate programmable and enforceable KYC and AML modules within the blockchain environment. The platform's layer-2 chains can customize their protocol layers to include compliance checks during transaction processing, ensuring digital asset products meet regulatory requirements without compromising scalability or security.
The platform's flexibility extends to interoperability and customizable security levels, fitting the needs of institutions. This allows for seamless integration of familiar compliance processes with on-chain operations, such as transaction filtering for sanctioned addresses or identity verification steps embedded in smart contracts.
Recuero's statement underscores the growing interest from traditional financial institutions in blockchain finance, specifically situations where blockchain companies can meet institutional needs. The recent investment of $20 million by Brevan Howard Digital, a digital asset unit, into Kinto's mining program signifies this growing interest.
Kinto's mining program rewards participants with token emissions for deposits to its platform, aiming to incentivize participation. The smart contract wallet offered by Kinto includes default insurance and security enhancements to further protect users.
In summary, Kinto's Ethereum layer-2 blockchain provides a compliant environment for traditional financial institutions to engage in digital asset products, addressing the two key concerns of institutions: regulatory clarity and compliance features. This development could mark a significant step forward in the integration of traditional finance and blockchain technology.
The Ethereum layer-2 blockchain solution Kinto is attracting attention in the finance industry, particularly among traditional institutions, as it facilitates the integration of digital asset products while ensuring regulatory compliance. This is attributed to its embedding of on-chain KYC and AML tools.
Furthermore, Kinto is focusing on DeFi applications and smart wallets that can incorporate programmable and enforceable KYC and AML modules, thereby catering to the regulatory needs of these institutions. This flexibility could pave the way for the seamless integration of traditional finance and blockchain technology, making significant strides in the realm of investing and technology.
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