Grayscale prepares for DeFi future with new cryptocurrency trust filings

The largest Bitcoin (BTC) and cryptocurrency asset manager in the world, Grayscale, could be set to move into the decentralized finance space after filings for several new trusts were filed in the Delaware corporate registry.

New trust filings for Aave (AAVE), Polkadot (DOT) and Cosmos (ATOM) were filed on Jan. 27. On the same day, Grayscale also registered trusts for Cardano (ADA), as well as privacy coin, Monero (XMR).

Grayscale has since stated that the filings are not indicative of a definite product launch for the five coins mentioned, merely that the firm is laying the groundwork for possible future launches.

“Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market,” the company has told industry media. 

Grayscale’s decision to expand its cryptocurrency horizons could have been spurred by the price performances of the five coins in question over the course of the past year. Aave recorded 483% growth in the final quarter of the previous year, climbing to the 15th spot by market capitalization. The project was a forerunner of the DeFi phase in 2020, focusing on lending and borrowing, and flash loans.

Cosmos recorded similar growth of 489%, as the value of its ATOM coin climbed from the $1.50 range to over $9. The project is now ranked 25th by market cap.

Polkadot, meanwhile, recorded 537% growth between launching in August and the time of writing. The project, which describes itself as a decentralized, interoperable, multi-chain protocol, takes aim at providing blockchain infrastructure and seeks to compete with Ethereum as a home for blockchain developers.

Although not among the graduating class of 2020, Monero also gained 467% over the course of the calendar year, while Cardano benefited from the launch of its much anticipated Shelley mainnet, having gained 187% since that time.

The value of Grayscale’s assets under management soared through 2020, resulting in an AUM of over $25 billion, according to the latest figures released by the company.