Maple Finance, a platform for institutional lending, announced on Thursday the Crypto Asset Manager Bitwise had begun to use its platform in order to lend to other institutions.
Sidney Powell is the CEO of Maple and its co-founder. Decrypt The decentralized financial system, or DeFiBitwise is one of the first investors in Bitwise to enter into this overcollateralized loan space. A series of explosive incidents in the media The collapse of FTX in 2022 was the culmination of this.
Depositing more than $1,000,000 worth of currency Stablecoin Maple uses USDC to manage its lending strategy, which is managed using on-chain. Smart ContractsPowell stated that Bitwise earns around 9.5% on funds which would have otherwise been untapped.
“They are deploying cash while they wait to select new fund managers,” he described the arrangement as “entirely self-service and totally transparent.”
Maple is at the intersection of DeFi lending and traditional loans. Although the Maple company handles the selection of borrowers and the negotiation of terms as well as the collection payments, its service relies on a decentralized network that sends out the loans. The Maple DAO is in control of the project's treasury funds, while that entity is governed around an associated SYRUP token.
DeFi is a common practice of overcollateralized lending, where a borrower locks up cryptocurrency with a value higher than what they wish to receive. Bitwise has chosen to accept only Bitcoin or Ethereum as collateral.
“We’ve always sought to take advantage of crypto-native investments that generate dynamic, uncorrelated returns,” Jeff Park, Bitwise’s Head of Alpha Strategies and portfolio manager, said this in a press release. “Maple’s deep expertise and battle-tested infrastructure position Bitwise and our clients well to access the opportunities with confidence and scale.”
According to DeFi, Maple’s lending platform has assets worth $427 Million and generated fees of $27,000,000 since 2023. DeFiLlama.
Bitwise went through a long due diligence procedure prior to its Maple allocating, Powell stated. However, he added that the interaction between asset managers and DeFi firms could become more frequent as regulatory changes under Donald Trump’s administration take place.
Powell specifically cited recent Securities and Exchange Commission reports. Staff Accounting Bulletin No. 121. The guidance was first introduced in 2022 and required that companies record both a liability as well as an asset corresponding to crypto assets owned by users.
Cantor Fitzgerald is a company that helps to manage Tether’s reserves. The following are some of the ways to get in touch with each other Last July, it was announced that the a The Bitcoin Lending Program. At the time, the firm’s Chairman and CEO, Howard Lutnick—who has since become Trump’s commerce secretary—said that he’s excited to continue “bridging the gap between traditional finance and digital assets.”
Blockstream, a Bitcoin-development firm, recently raised billions to launch three new funds. Two of them will allow crypto lending. Bloomberg On Tuesday, the report was published.
“I think it won’t be long before you see more of these types of products emerge,” Powell said, describing lending against Bitcoin for yield as “among the oldest on-chain credit strategies."
James Rubin, Editor
