This Ethereum Startup Is Building a ‘DeFi Firewall’ for Institutional Investors

The “Firewall” is basically a set of rules or filters selected by a fund, specifying which DeFi protocols or decentralized exchanges they consider kosher. Trustology, which is backed by ConsenSys and Two Sigma Ventures, has already built wallet-native tools to prevent clients from sending their crypto to the wrong address or the wrong exchange, and now this is being extended to DeFi smart contracts, explained Trustology CEO Alex Batlin.

Certain blockchains have endeavored to protect smart contracts by preventing unauthorized access, and there are several DeFi-primed wallet solutions around today, said Batlin, but nothing that offers the type of institutional controls for businesses to legally operate in DeFi. “It’s more family office and very alternative, and they’re looking at 10%-15% allocation,” said Batlin, adding: “We’ve signed up five new funds in the last two weeks and they were all guys from the traditional space who had set up crypto funds to focus on DeFi.

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