- Funding to Expand Asia Presence
- Launch of Maple Direct Lending
- Focus on Transparent, On-Chain Approach
Maple Finance has successfully raised $5 million in funding, aiming to drive its growth strategy in Asia. The funds will also be allocated towards the development of Maple Direct, the platform’s newly introduced lending division.
Led by Tioga Capital and Blocktower Capital, the recent funding round saw the participation of GSR Ventures, Cherry Ventures, Veris Ventures, and The Spartan Group.
Thomas Klocanas, General Partner and Head of Venture at Blocktower Capital, highlighted that Maple’s approach of facilitating third-party credit experts to establish and scale on-chain lending enterprises positions it as a valuable conduit for institutional entry into the sector. This, in turn, is expected to foster sustainable development in the wider digital asset market.
Maple Finance functions by allowing borrowers to establish their personalized credit facilities on the blockchain, opening up their offerings to various lenders within their pool. An example of this is the 2021 collaboration with Icebreaker Finance, where a $300 million lending pool was launched on Maple to support Bitcoin miners during a challenging market phase.
Recent developments by Maple include introducing a new pool that enables accredited investors in the United States to access tokenized treasury bills.
Notably, Maple serves as the underlying platform for these lending pools, with the pool delegates and lenders undertaking individual underwriting and risk verification processes.
The fresh influx of capital will be dedicated to expanding Maple’s services on a global scale, with particular focus on the Asia-Pacific (APAC) region. Various APAC jurisdictions, including Singapore and Hong Kong, have been moving towards crypto-friendly regulations. Hong Kong’s decision to reopen crypto trading to retail investors and Singapore’s efforts to establish clear regulatory guidelines for crypto exchanges have contributed to the region’s attractiveness for expansion.
Maple Finance CEO Sidney Powell stated that the supportive regulatory environment in places like Singapore and Hong Kong has driven their interest in expanding into these markets.
With the recent struggles of major lending platforms like Genesis Lending, BlockFi, and Celsius, Maple Finance identified an unmet need within the institutional lending sector.
In addition to serving as a platform for third-party pool creation, Maple is now introducing its standalone lending division, Maple Direct. Launched in June, Maple Direct offers overcollateralized loans backed by Bitcoin, Ethereum, and staked Ethereum as collateral.
Powell explained that Maple is seizing the opportunity presented by the exit of key lending players from the previous cycle. The transparent on-chain approach to lending products, coupled with using a qualified and licensed custodian, sets Maple Direct apart. The borrowed collateral is not rehypothecated, instead, it is securely held by a trusted custodian.
Maple views this as an initial step, with plans to further expand its offerings in the future, particularly anticipating heightened demand during the next bull market. Powell emphasized the company’s desire to build its offerings now in preparation for future growth.