Cryptocurrency hardware wallet provider Ledger is deploying lending-borrowing protocol Alkemi Network to provide users with DeFi-sourced vaults wrapped in a familiar wallet interface.
By utilizing Alkemi Network’s institution-grade liquidity platform, Ledger is able to offer DeFi-level yields through existing CeFi-based vaults, offering both accessibility and earning potential.
With the Alkemi Earn integration, Ledger Live users can earn yield on their assets through DeFi lending and borrowing for the first time. By simply going into the Discover section and selecting Alkemi, they can put their assets to work and earn a passive income by committing their liquidity to the decentralized finance vaults.
The integration aims to solve a pressing need for many users who are hearing about the attractive yields found in DeFi, especially when compared to traditional finance options. Typically, in order to tap into these yields, users need to learn about Web3 wallets, proper custody, gas prices, approvals, and many other complicated terms and procedures. By contrast, creating a bridge to the same yields while maintaining Ledger’s familiar interface simplifies the process.
The collaboration also attracts a much higher number of potential users, who may prefer to trust a reliable platform that offers bank-grade compliance features.
The partnership between the two companies enables DeFi liquidity to be accessed by CeFi users in a trusted-counterparty environment. Furthermore, the compliant environment maintained between Ledger and Alkemi has an extra safeguard to allow institutions and retailers to securely lend their assets and earn yields both off-chain and on-chain.
Alkemi Earn supports some of the most liquid on chain asset markets in DeFi including ETH, Dai, USDC and wBTC. Users also earn ALK tokens while borrowing and lending on Alkemi Earn.
“‘Not your keys, not your coins,’ as the saying goes. With this native integration into Ledger Live, Alkemi Earn unlocks a protocol powered cash management experience for Ledger’s community. This is what bridging CeFi to DeFi is all about,” said Brian Mahoney, Co-founder of Alkemi Network.
“Ledger Live is your gateway to digital assets and Web3, and we’re excited to integrate the first Yield app into Ledger Live. With Alkemi, Ledger users will have more ways to grow their assets while enjoying all the benefits of crypto without centralized custodians.” added JF Rochet, VP of International Development at Ledger.
Ledger announced in March that users of its popular crypto hardware wallet are now able to purchase cryptocurrency directly in the App with bank cards after it has inked a partnership with Canadian payments firm Nuvei.
The agreement gives Ledger users a fiat onramp to conduct and settle crypto transactions, a grey area of business where a gauntlet of KYC requirements and other regulations kick in.