DeFi protocol Spool rolls out compliance-focused ‘V2’ to court institutions

Blockworks exclusive: Spool is in talks with small and regional banks as well as one of the ten largest asset managers as it rolls out v2, the DAO’s lead contributor said

article-image

Spool and Golden Wind/Shutterstock modified by Blockworks

share

Spool Finance has launched v2 of its DeFi middleware product in hopes of becoming a gateway for institutions to enter decentralized finance. 

Spool v2 was created with an eye to regulatory compliance following feedback from the traditional finance institutions Spool is courting with its DeFi product. Two major institutions could join the fray through Spool by the end of next year, the project’s lead contributor said, but declined to name them.

To assure regulatory compliance, Spool was advised by the white-shoe Swiss law firm Bär & Karrer. 

The Spool protocol launched in March 2022 as a “set it and forget it” solution for DeFi investment. The platform creates automated yield strategies from DeFi protocols based on an investor’s risk appetite.

Read more: The ‘next leg’ of DeFi users will be institutions, Blockchain Capital’s Larsen expects

Spool is organized as a DAO that hires employees with specific mandates to develop the business side of the protocol. It has no formal legal organization. 

Upon launching, Spool had trouble garnering interest from institutional investors, said Simon Schaber, Spool’s chief business development officer.

“When I went to them, I said, ‘Look, we’ll offer you fully transparent, everything in-house, compliant.’ They said, ‘Yeah but look, Simon, there’s this huge player called Celsius. They’ve got a shitload of funds under management. They’re too big to fail. Why don’t we just put it into Celsius?” Schaber said.

After Celsius crashed alongside a few other centralized yield-generating products in crypto, Spool started seeing more serious institutional interest in Q3 of 2022.

Now, alongside its more DeFi-native clients, Spool is working on deals with Fintech firms as well as small and regional banks, Schaber said, adding that the protocol was also in serious talks with one of the ten largest asset managers in the world as well as one of the largest banks, though he would not disclose which.

Vault creators can charge management fees in Spool v2.

Spool made smart contracts a large part of its pitch to investors, Schaber said. While traditional fund management software can go offline or change hands, leading to renegotiation of terms, Spool’s permissionless software functions indefinitely. 

In v2, vaults can now be “gated,” meaning addresses can only interact if they adhere to know-your-customer (KYC) or some other criteria, and “multi-asset,” where investors can combine assets in a vault. 

Schaber said on-chain and off-chain assets could be combined through its institutional partnerships, combining liquid staking tokens with dividend-focused real estate in a mutual fund, for instance.

Tokenization of so-called “real-world assets” is anticipated to be a major driving narrative in crypto over the coming years.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

The DeFi Education Fund has ideas on how the crypto-friendly SEC can bring Commissioner Peirce’s vision to life

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability