Cryptocurrency lending platform Maple Finance has launched a pool for US Treasury securities. With this move, the DeFi altcoin project will give accredited investors outside the US access to a month’s worth of US Treasury papers.
US Treasury paper pool for institutional investors from DeFi altcoin!
Cryptocurrency lender Maple Finance has created a pool of United States Treasury securities for accredited investors and organizations outside the United States. According to an April 19 announcement, Maple Finance has launched a new Cash Management Pool for corporate Web3 investors to have direct access to US Treasury Bills.
Incidentally, this facility is not available to US individuals or organizations. The pool will provide lower-fee returns to lenders from one-month U.S. Treasury bonds and reverse purchase contracts with crypto hedge fund Room40 Capital, which serves as the sole borrower through a special purpose vehicle (SPV). Maple developers made the following statement on the subject:
While there are a handful of “risk-free rates” offers on-chain, they don’t provide the peace of mind needed to attract hard-earned treasury funds. Counterparty risk is too high, assets are too illiquid, too complex with ETFs, or 1-2% is too low for a smart contract risk level.
What opportunities does the crypto lender provide with this development?
Maple Finance claims that all pool assets are “held in an independent SPV held by a regulated master broker and Lenders have full recourse over all assets.” The firm also says that the initial engagement “takes between 10-15 minutes to complete” and that interest accrues immediately from the moment it is deposited, with no lock-in period. In this context, the crypto lending platform makes the following statement:
Lenders have a real-time view of the borrower’s portfolio of assets held at a regulated broker, and interest statements can be downloaded at any time.
Maple Finance is currently available on Ethereum and Solana Blockchains. Meanwhile, the crypto lender, as we reported on Kriptokoin.com, has provided approximately $1.9 billion in loans since its inception. US Treasury bills are classified as securities. As a result, derivatives containing such instruments as underlying assets cannot be sold to US investors without registration or exemption from the Securities and Exchange Commission.
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