The Abu Dhabi-based arm of Brevan Howard Digital, the crypto division of the global investment firm, has deployed $20 million into Kinto, a blockchain platform designed to facilitate institutional participation in decentralized finance (DeFi).
This move makes Brevan Howard Digital one of the first traditional financial firms to engage with Kinto’s on-chain mining program, the protocol announced.
Kinto’s Institutional DeFi Approach
Kinto operates as an Ethereum layer-2 network with built-in compliance mechanisms, including Know-Your-Customer (KYC) and Anti-Money Laundering (AML) protocols. These features address the regulatory challenges that have kept traditional financial institutions from fully participating in DeFi.
Additionally, Kinto offers a smart contract wallet with default insurance and security enhancements, further catering to institutional needs.
Long-Term Incentives for Institutional Adoption
Kinto’s mining program, which will run for ten years, rewards participants with tokens for depositing assets on-chain. While similar incentives are common in DeFi, regulatory hurdles have historically limited access for traditional financial firms.
The investment from Brevan Howard Digital signals a growing institutional appetite for blockchain-based finance, especially as platforms like Kinto provide the compliance and security features necessary to meet stringent regulatory standards.
“Institutions have been waiting for two things: regulatory clarity and compliance features. Now, through Kinto, financial institutions don’t need to wait any longer,” said Ramon Recuero, Kinto’s co-founder and CEO.
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