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Compound launches an institutional-only lending market for USDC

The new Institutional Market accepts only whitelisted borrowers, using tighter collateral terms and loan-to-value ratios while running on Compound v3.

Reported · Written up by our desk · Market Structure

Compound Foundation has launched an institutional-only lending market within Compound, separating liquidity for whitelisted participants rather than letting funds and retail wallets borrow on identical terms. The move comes about three weeks after the protocol relaunch centered on institutional credit, and it is the first rollout from a $52 million program approved by the Compound DAO in August.

The Institutional Market lends USDC against a limited set of collateral, ETH, wstETH, WBTC, and cbBTC, and it assigns borrowers their own collateral set, loan-to-value ratios, and a named point of contact. The collateral list is designed to be short and liquid, and Compound says that limiting the asset menu allows the market to support higher loan-to-value ratios than platforms that must price less liquid “tail” risk.

On-chain data cited in the report shows Compound holds $1.53 billion in total value locked, with $638 million borrowed against it. Ethereum accounts for $1.42 billion of that total, or 93%, and Compound’s TVL is up 23% over 30 days, while COMP trades at $20.88, up 9% over seven days.

Compound says the Institutional Market was oversubscribed on day one, though it did not disclose a subscription figure. Eligibility starts at 100,000 USDC in deposits, and the foundation has set aside 200,000 USDC in supplier incentives paid pro rata over three months, against a $20 million supply cap.

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