One of the first mobile apps to bridge traditional and DeFi banking has opened a waitlist this week.
The app could be the first of its kind to provide fiat money holders with easy exposure to DeFi lending protocols, removing all of the crypto-savvy steps typically involved.
Traditional & DeFi banking in one
Linen App appears to provide the user with access to traditional banking functionality such as bill payments and transfers, and pairs this with an option to allocate money to a “high-interest” account.
This high interest account supplies money to a lending pool, which is then used to supply collateral in the form of stablecoins to the Compound Finance DeFi protocol. These tokens generate interest, which is then distributed back to Linen App users.
DeFi lending of quasi-US Dollar assets currently generates extremely high levels of interest, especially when compared to savings accounts with traditional banks.
The team behind Linen App hopes that their platform will provide a larger number of everyday people with access to these DeFi tools and rates, which usually require extremely specialized knowledge.
Interest payments are made in real-time, and users are able to withdraw their balances as desired.
Backed by Coinbase
The app has already secured investment from a number of big names in the industry, with backing from Coinbase Ventures, Polychain Capital, Wyre Capital, and Hashkey Capital.
A target launch date has been set for Q4, 2019.
Alejandro is a blockchain writer and consultant who has been involved in the space since early 2016. Being extremely passionate about this emerging technology, he has written content for a myriad of projects and news outlets.