Brevan Howard Digital Invests $20M in Kinto, Bridging Traditional Finance and DeFi

Brevan Howard Digital, the crypto arm of global investment management firm Brevan Howard, has allocated $20 million to Kinto, an on-chain financial network built on top of Ethereum. Kinto integrates compliance features such as KYC and AML at the blockchain level, appealing to institutional investors. This investment marks a growing trend of traditional finance firms engaging in DeFi ecosystems.

The Abu Dhabi-based branch of Brevan Howard Digital has deployed the funds on Kinto, a blockchain platform designed for institutional participation in decentralized finance (DeFi). The deposit makes Brevan Howard Digital one of the first traditional financial firms to tap into Kinto’s on-chain mining program, the protocol said.

Kinto operates as an Ethereum layer-2 network with built-in compliance mechanisms, including Know-Your-Customer (KYC) and Anti-Money Laundering (AML) protocols. These features facilitate financial institutions, which face strict regulatory requirements, to participate in decentralized finance. Kinto also offers a smart contract wallet with default insurance and security enhancements.

The platform’s mining program, set to run for a decade, incentivizes participants by distributing token rewards for depositing assets on-chain on Kinto. Mining programs have been a staple in the DeFi sector but have largely been out of reach for traditional financial institutions due to compliance hurdles.

Brevan Howard Digital’s participation signals growing interest from legacy financial firms in blockchain-based finance, particularly as platforms like Kinto adapt to meet institutional needs. Ramon Recuero, Kinto’s co-founder and CEO, stated, “Institutions have been waiting for two things: regulatory clarity and compliance features. Now, through Kinto, financial institutions don’t need to wait any longer.”