Crypto asset manager Grayscale has introduced a new investment product providing exposure to Aave‘s native token, AAVE/USD, as part of the firm's ongoing efforts to offer a wider range of innovative crypto investment products.
It enables users to borrow cryptocurrency by using their existing tokens as collateral and also allows them to lend their crypto assets to earn interest.
Aave is a decentralized lending platform built on the Ethereum ETH/USD blockchain.
While AAVE’s market capitalization is around $2.3 billion—a relatively modest figure compared to more popular cryptocurrencies—the platform has established itself as the largest lending protocol in the crypto space in terms of total value locked (TVL), according to data from DeFiLlama.
"Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance," Coindesk quoted Rayhaneh Sharif-Askary, Grayscale's head of product and research.
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"By leveraging blockchain technology and smart contracts, Aave’s decentralized platform aims to optimize lending and borrowing while removing intermediaries and reducing reliance on human judgment,” she added.
This launch follows closely on the heels of Grayscale’s recent rollout of the Grayscale Avalanche Trust, designed to give investors exposure to the AVAX token.
The asset manager now offers over 20 different crypto investment products, a number that has steadily increased since the introduction of spot Bitcoin exchange-traded funds (ETFs) earlier this year, sparking a new wave of interest in publicly tradable crypto assets.
In addition to this new fund, Grayscale is also the issuer of several other prominent products, including the Grayscale Bitcoin Trust GBTC, Grayscale Mini Bitcoin Trust BTC, Grayscale Ethereum Trust ETHE and Grayscale Ethereum Mini Trust ETH, all launched earlier this year.
What’s Next: For a deeper dive into crypto trends and developments, the Benzinga Future of Digital Assets event, set for Nov. 19, will provide valuable insights and expert perspectives.
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