Key Insights

• Brevan Howard Digital’s Abu Dhabi branch has invested $20 million in Kinto, an on-chain financial network leveraging Ethereum.
• Kinto introduces compliance protocols at the blockchain level, attracting institutional investors with its KYC (Know Your Customer) and AML (Anti-Money Laundering) features.
• This investment signifies a trend of traditional finance companies entering the DeFi space.

The Abu Dhabi division of Brevan Howard Digital, the crypto-focused segment of a global investment firm, has made a notable $20 million investment in Kinto, a blockchain platform aimed at facilitating institutional involvement in decentralized finance (DeFi).

This contribution positions Brevan Howard Digital as one of the pioneering conventional financial firms to engage with Kinto’s on-chain mining initiative.

Kinto functions as an Ethereum layer-2 network equipped with integrated compliance functionalities, including KYC and AML protocols. This setup allows financial entities with stringent regulatory demands to engage in DeFi activities. The platform also features a smart contract wallet with added security measures and default insurance.

The mining initiative is set to continue for a decade, rewarding participants by distributing tokens for depositing assets onto Kinto’s blockchain. While mining has been a common aspect of DeFi, traditional financial firms have previously struggled with compliance issues.

Ramon Recuero, Kinto’s CEO and co-founder, remarked: “Institutions have been waiting for two things: regulatory clarity and compliance features. Now, through Kinto, financial institutions don’t need to wait any longer.”