Solana’s leading portfolio management platform, Friktion, has joined forces with digital asset and crypto technology platform, Fireblocks, to enable institutional access in DeFi.
This partnership will see over 1300+ of Fireblock’s clients connected to Friktion’s core product, Volts, safely and conveniently. This will mark a key milestone for Friktion institutional, a new division focused on scaling DeFi products to various asset managers, treasuries and DAOs.
Institutional interest in DeFi
“Institutional appetite for DeFi continues to grow in popular blockchain ecosystems like Solana. Fireblocks’ DeFi suite offers alternative investors with the highest level of security when it comes to accessing Solana’s ecosystem of applications, with Friktion being one of the first Solana dApps.”Michael Shaulov, CEO of Fireblocks
DeFi is a multi-billion dollar sector with great interest from leading institutions. Big players such as Goldman Sachs and Blackrock have taken steps to explore various ecosystems and DeFi.
The partnership between Friktion and Fireblocks will take that a notch higher, providing institutions greater accessibility to various products crypto offers. These include access to Covered calls, Cash-secured puts, Volatility harvesting, Basis yield, and Principal protected strategies for over 25+ crypto assets on Friktion.
Friktion has amassed over 17,000 users and traded over US$2.5 billion in volume, with a US$50 million in total value locked.
DeFi to propel instituions
After exposure, adoption will soon come. Friktion will put the power in the hands of institutions as they look to access the real yields of DeFi. The added integration of Fireblocks will play a pivotal role in ensuring the security of the institutions entering the world of DeFi.
Furthermore, Fireblocks will provide portfolio management accessible to thousands of funds, foundations and businesses that require battle-tested security.
“Transparency, risk-adjusted returns, and security are paramount for institutions entering DeFi. Fireblocks provides a key piece of infrastructure to power Friktion Institutional, connecting the world’s leading institutions to real DeFi yields that perform across market cycles.”Uddhav Marwaha, CEO of Friktion Labs
Fireblocks as a solution for institutional DeFi
While adopting DeFi may seem like a positive step for institutions, there are jarring limitations they currently face. This includes exposed private keys posing as a security pitfall in trading firms/OTC transactions, operational challenges utilizing hardware wallets, and the need for audit trails for accounting and compliance purposes.
Fireblocks mitigates these risks by offering solutions which deliver enterprise-level security, efficiency and scalability.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: ChainDebrief