May 29, 2024
Berlin's Finoa Opens Regulatory-Compliant DeFi Access for Institutions
Latest Cryptocurrency News

Berlin’s Finoa Opens Regulatory-Compliant DeFi Access for Institutions

Finoa, a Berlin-based cryptocurrency custody firm, is expanding its services to provide its institutional clients with access to a regulatory-compliant form of decentralized finance (DeFi) through its custodial wallet infrastructure. Earlier this year, Finoa received license approvals from the German financial regulator BaFin, paving the way for this initiative.

The offering, known as FinoaConnect, integrates a curated list of permissions DeFi platforms, web3 applications, and blockchain governance scenarios into Finoa’s custodial wallet system. This move allows regulated institutions to participate in activities such as DeFi lending pools and automated marketmaking. However, it’s important to note that these institutions must adhere to strict anti-money laundering (AML) measures, which often include digital identity verification and whitelisting of lending counterparties.

According to Finoa founder Henrik Gebbing, there has been significant demand from institutional clients to incorporate decentralized applications (dApps) into their custodial wallets. While exploring various off-the-shelf wallet solutions, Gebbing determined that these options did not meet the security and transaction integrity standards established by Finoa’s custodial wallet infrastructure, which has been developed over the past five years.

Gebbing emphasized that Finoa’s status as a regulated custodian is a crucial differentiator. Unlike some other platforms, Finoa does not simply connect its wallets to any decentralized app without restrictions. Instead, FinoaConnect offers a carefully curated selection of dApps that align with regulatory requirements and compliance standards, ensuring a secure and compliant DeFi experience for institutional clients.

Image by Freepik

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