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Compound Foundation approves $52 million plan to build bank credit rails
The two-year budget, approved via COMP Proposal 582 on May 10, allocates $38 million into a milestone-based Program Reserve under a 5-of-7 committee.
Compound Foundation has named four executives with backgrounds at Coinbase Custody, Anchorage Digital, the NEAR Foundation and Maple Finance to pursue a $52 million, two-year institutional push for Compound’s lending protocol.
According to The Defiant, the plan aims to turn Compound’s 2018 lending infrastructure into what the Foundation describes as credit infrastructure for banks and asset managers, highlighting the protocol’s operating history and, by its account, zero bad debt since launch. The Foundation said the record held through November 2025, when Compound paused withdrawals in three stablecoin markets on Gauntlet’s recommendation as Elixir’s deUSD collapsed.
The Foundation said it holds about $1.23 billion in deposits across Compound V3 and V2, compared with Aave’s $14.8 billion and Morpho Blue’s $8.06 billion, and it frames the hire wave as a step toward bridging what it calls a gap in institutional adoption. COMP holders approved the funding through Proposal 582, executing on May 10 with 1.88 million COMP in favor and nothing against or abstaining.
The $52 million budget is split between $28 million for operations, including engineering, integrations, risk and marketing, and $24 million for growth, including institutional onboarding, market seeding and curator expansion. The Defiant reported that only $14 million goes to the Foundation’s own multisig, while $38 million sits in a Program Reserve released against milestones, including a staffed engineering team and a production V3 integration kit for the first tranche.