Compound Finance approves a record budget of $52 million, shifting towards institutional clients

According to CoinDesk, the decentralized lending protocol Compound Finance has completed a leadership adjustment and approved a record budget of $52 million. The total value locked in the protocol has decreased from a peak of $12 billion in 2021 to $1.2 billion, and it is seeking to restore growth.

Compound Finance is shifting towards serving institutional clients, developing real-world asset products, partner integration solutions, and credit infrastructure to meet the compliance and technical standards of traditional finance.

Industry executives stated that Compound Finance's new leadership team and large budget align with the overall shift in the decentralized finance sector towards serving financial institutions. The overall assets in this sector had previously decreased due to market weakness and security breach incidents.