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Crypto lender Maple Finance has introduced a United States Treasury pool aimed at non-U.S. accredited investors and entities.
As stated in an April 19 announcement, Maple Finance has unveiled a new Cash Management Pool that allows institutional Web3 investors to directly access U.S. Treasury Bills. This offering is not accessible to U.S. individuals or entities. The pool will generate yield from one-month U.S. Treasury bills and reverse purchase agreements, after deducting fees, with crypto hedge fund Room40 Capital acting as the exclusive borrower through a special purpose vehicle (SPV). Maple developers noted:
“While there are a few on-chain offerings for the ‘risk-free rate’, they fail to provide the necessary assurance to attract hard-earned treasury funds. Counterparty risk is often too elevated, assets are too illiquid, the complexity of ETFs is excessive, or the rates of 1-2% are insufficient given the level of smart contract risk.”
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Maple asserts that all assets in the pool are maintained in a separate SPV “custodied by a regulated prime broker, and lenders have complete recourse over all assets.” The company also mentions that onboarding “takes between 10-15 minutes to finalize,” and that interest begins to accrue immediately upon deposit with no lock-up period.
“Lenders have a real-time overview of the borrower’s asset portfolio held with a regulated broker, and interest statements can be accessed for download at any time.”
Maple Finance is presently operational on the Ethereum and Solana blockchains, having originated approximately $1.9 billion in loans since its inception. U.S. Treasury bills are categorized as securities. Consequently, derivatives that include such instruments as the underlying asset cannot be marketed to U.S. investors without registration or an exemption from the Securities and Exchange Commission.
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