Brevan Howard Digital Invests in Kinto’s Blockchain Platform
Brevan Howard Digital, the cryptocurrency division of the prominent global investment management firm based in Abu Dhabi, has made a significant move by investing $20 million into Kinto. This innovative blockchain platform is tailored specifically for institutional participation in the world of decentralized finance (DeFi). With this strategic deposit, Brevan Howard Digital emerges as one of the pioneering traditional financial firms to engage with Kinto’s on-chain mining program, as announced by the protocol.
Kinto operates as an Ethereum layer-2 network, incorporating vital compliance mechanisms such as Know-Your-Customer (KYC) and Anti-Money Laundering (AML) protocols. These features are essential for enabling financial institutions, which are often bound by stringent regulatory frameworks, to seamlessly participate in decentralized finance. Furthermore, Kinto provides a smart contract wallet equipped with default insurance and enhanced security measures, ensuring the safety of institutional assets.
The mining program launched by Kinto is designed to run for an impressive duration of a decade, incentivizing participants through the distribution of token rewards for assets deposited on-chain. While mining programs have long been a fundamental aspect of the DeFi landscape, they have often posed compliance challenges that deter traditional financial institutions from involvement.
The participation of Brevan Howard Digital marks a notable shift in the attitude of legacy financial firms towards blockchain-based finance. According to Ramon Recuero, co-founder and CEO of Kinto, this investment reflects a burgeoning interest among established financial institutions in exploring the potential of decentralized platforms. He stated, “Institutions have been waiting for two things: regulatory clarity and compliance features. Now, through Kinto, financial institutions don’t need to wait any longer.”
