MetaMask has entered into a partnership with 3 crypto-based custodians as part of a bigger plan to bring in more institutional capital, to the digital asset market.
On Tuesday, the Decentralized finance (DeFi) wallet and browser extension announced its partnership with BitGo, Cactus Custody, and Qredo. And from the look of things, this collaboration is centered around creating a new product called the MetaMask Institutional— an offering that provides institutional investors with access to large sums of collateral in the DeFi market.
Recall that MetaMask Institutional was introduced earlier in May by ConsenSys, the ethereum developer behind it, and now it’s functionality is being revealed.
While speaking about how MetaMask Institutional will work, a spokesperson of the company confirms that it would retain similar features and functionality as MetaMask. That is, connectivity to the DeFi ecosystem— where trading, lending, staking, and borrowing across all EVM-compatible (Ethereum Virtual Machine) chains can be done. Also according to the spokesperson, the biggest difference between MetaMask Institutional and the original wallet extension is in how private keys are stored.
The institutional offering will be coming with inbuilt compliance functionalities that will let it perform Know Your Transaction analysis on DeFi pools.
DeFi has undoubtedly become one of the most promising use cases in cryptocurrency and within the blockchain technology. And at the time of writing this report, almost a total value of $195 billion is locked into the DeFi ecosystem. In fact, industry data shows that ethereum-based protocols account for 69% of that $195 billion.
The growth of DeFi can be attributed to no other factor than the recent surge in active users on MetaMask and other browser extensions. Back in August, active users on MetaMask surpassed the 10 million mark, seeing a 19 times growth over the past one year.
Hopefully, this partnership will as expected, help institutional inclusion and bring institutional capital to the digital asset market.