Compound launches USDC lending market with up to 87% loan-to-value for institutions.

Compound Foundation has introduced a new USDC lending market offering loan-to-value ratios up to 87%, targeting institutional investors with a $52 million development plan. The market accepts ETH, wstETH, WBTC, and cbBTC as collateral, with borrowing caps of $10 million per asset and liquidation penalties ranging from 5% to 10%. This initiative aims to provide institutions with enhanced borrowing capacity, defined risk parameters, and dedicated operational support. The product launch saw strong demand from notable DeFi players, and Compound plans to expand its capabilities further under a new management team and a two-year program focused on institutional lending and real-world asset integration.