Bitwise Selects Maple Finance for ‘Battle-Tested’ DeFi Lending
Exciting news from the world of crypto lending: Maple Finance, the institutional lending platform, announced this Thursday that major crypto asset manager Bitwise has started utilizing their platform to extend loans to other institutions.
Maple’s co-founder and CEO, Sidney Powell, shared with Decrypt that this decentralized finance (DeFi) lending strategy is among Bitwise’s initial moves into the overcollateralized lending space. This sector, as Powell noted, has faced increased scrutiny, especially following the significant market events and high-profile collapses, culminating in the FTX situation of 2022.
After depositing over $1 million in the stablecoin USDC into one of Maple’s on-chain lending strategies—all powered by smart contracts—Powell mentioned that Bitwise is now generating around a 9.5% yield. This return is being earned on funds that would otherwise be sitting idle.
“They’re essentially putting their cash to work while they’re in the process of selecting new fund managers,” he explained, describing the entire setup as “entirely self-service and totally transparent.”
Maple operates at the intersection of DeFi and traditional finance. While they handle aspects like choosing borrowers, setting loan terms, and managing repayments, the whole system is built on decentralized rails that facilitate the actual lending. The Maple DAO governs the project’s treasury, with its operations guided by the SYRUP token.
Overcollateralized loans, a common feature in DeFi, require borrowers to pledge crypto assets exceeding the loan amount. This approach helps minimize liquidation risks. Bitwise, in choosing their strategy, opted for one that exclusively accepts Bitcoin and Ethereum as collateral.
“We’ve always aimed to tap into crypto-native investments that can deliver dynamic returns that aren’t correlated with traditional markets,” stated Bitwise Head of Alpha Strategies and Portfolio Manager Jeff Park. He added, “Maple’s deep expertise and robust infrastructure position both Bitwise and our clients to confidently and effectively seize these opportunities at scale.”
Since 2023, Maple has reportedly generated $27 million in fees, and according to DeFi data provider DeFiLlama, the total assets on their lending platform currently stand at $427 million.
Bitwise went through a comprehensive due diligence process before allocating to Maple. Powell suggests that interactions between asset managers and DeFi firms could become more common, especially given the evolving regulatory landscape under President Donald Trump’s administration.
Specifically, Powell highlighted the Securities and Exchange Commission’s (SEC) recent repeal of Staff Accounting Bulletin (SAB) No. 121. This guidance, initially introduced in 2022, had required companies to record both a liability and a corresponding asset for any crypto assets held on behalf of users.
Adding to this trend, Cantor Fitzgerald, which assists in managing Tether’s stablecoin reserves, announced last July their intent to launch a Bitcoin-backed lending program. At the time, Howard Lutnick, the firm’s Chairman and CEO—who has since transitioned to become Trump’s commerce secretary—expressed excitement about continuing to “bridge the gap between traditional finance and digital assets.”
Further signaling this direction, Bitcoin development firm Blockstream recently secured billions of dollars to launch three new funds, with two specifically aimed at crypto lending, as Bloomberg reported this past Tuesday.
“I anticipate we’ll see more of these types of products emerging soon,” Powell concluded, highlighting that lending against Bitcoin for yield is “among the oldest on-chain credit strategies,” indicating a well-established practice.
