Compound Pivots to Institutions With $52M as DeFi Demand Cools
Published:August 18, 2026 Last Updated: August 18, 2026 Compound Finance approved a $52 million budget and overhauled its leadership as the DeFi lender looks to attract more institutional investors. The. . .
Last Updated:August 18, 2026Compound Finance approved a $52 million budget and overhauled its leadership as the DeFi lender looks to attract more institutional investors. The move comes as assets locked on Compound have fallen to about $1. 2 billion from a peak of $12 billion in September 2021. The protocol plans to focus on real-world assets, partnerships and credit infrastructure for traditional financial institutions. 1/ Compound is entering its next era. Today we're announcing a new leadership team and a $52M DAO-approved development program,the largest in the protocol's history, to bring institutional credit onchain. https://t. co/gMJMSVg2ZX— Compound Foundation (@Compound_xyz)August 17, 2026Compound Turns Toward InstitutionsCompound helped pioneer DeFi lending after launching in 2018. It has since processed about $480 billion in deposits and borrowing, but has lost ground to larger rivals. Aave now holds about $14. 9 billion in assets, more than 11 times Compound’s total, according toDeFiLlama. The shift comes as the broader DeFi market faces weaker demand, lower yields and security exploits. Sector-wide total value locked has fallen by more than a third this year to about $70 billion. Leadership Overhaul Backs New StrategyCompound’s new leadership includes Christopher Donovan, Steven Liu and Aaron Schnarch, the former CEO of Coinbase Custody. Executives from Anchorage Digital, HSBC, Broadridge Financial and Maple Finance have also joined the team. Schnarch said institutional adoption has been limited by gaps between DeFi products and traditional finance standards. Compound plans to address those gaps through stronger compliance and technical infrastructure. According toCoinMarketCapdata, COMP rose 11% over the 24 hours to $17. 97 as of Aug. 18. Related:Tether Bets on Lightweight AI to Reach Millions in Emerging MarketsDisclaimer:The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.