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Permissioned Lending Pools

Definition

Permissioned lending pools are digital asset lending platforms where participation is restricted to approved entities or individuals. Unlike fully decentralized, permissionless pools, these platforms implement controls such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, often targeting institutional investors or accredited participants. This structure allows for compliance with regulatory requirements, reducing counterparty risk and enabling the lending of certain regulated assets. The objective is to bridge the gap between traditional finance and decentralized lending by offering a compliant environment.