Bitwise, one of the leading crypto asset managers, has chosen Maple Finance – a decentralized lending protocol (DeFi) – to provide loans for institutions. This is a bold move, especially as the overcollateralized lending sector is still affected by the collapse of FTX in 2022.

Bitwise Joins DeFi Lending – A Strategic Move.

With a deposit of over 1 million $USDC on Maple Finance's platform, Bitwise is earning a yield of about 9.5%, instead of letting capital sit idle. According to Maple's CEO, Sidney Powell, this is how Bitwise leverages cash flow while looking for new investment funds.

Notably, the loans that Bitwise participates in only accept Bitcoin ($BTC ) and Ethereum ($ETH ) as collateral, which helps mitigate liquidation risk. This aligns with Bitwise's investment philosophy:

"We are always looking for crypto-native investments that provide dynamic returns and are uncorrelated with the traditional market."
— Jeff Park, Alpha Strategy Director at Bitwise

Maple Finance – A Bridge Between DeFi and Traditional Finance.

Maple Finance is not like typical #lending DeFi protocols. They actively choose borrowers, negotiate terms, and recover loans, while still leveraging blockchain technology to ensure transparency.

Maple's decentralized financial system is managed by DAO and the SYRUP token, which helps maintain decentralization while still having a high level of control.

Some impressive numbers from Maple Finance:
🔹 $27 million in transaction fees from 2023 to date.
🔹 $427 million in assets are being lent out (according to DeFiLlama).

Sidney Powell believes that traditional finance (#TradFi ) participating in DeFi may become more popular, especially as the Trump administration is adopting more open policies towards crypto.

One notable move is the U.S. Securities and Exchange Commission (SEC) repealing regulation SAB No. 121, making it easier for companies to hold crypto assets.

In addition to Bitwise, several major financial companies are also beginning to enter the Bitcoin collateralized lending sector, including:
✔ Cantor Fitzgerald – The USDT reserve management partner of Tether, announced a Bitcoin lending program last year.
✔ Blockstream – Has raised billions of USD to launch 3 new investment funds, 2 of which focus on crypto lending.

Powell believes that:

"It won't be long before many Bitcoin collateralized lending products emerge. This is one of the oldest credit strategies on-chain."

In Summary: Is Bitwise Leading a New Trend?

Bitwise's use of Maple Finance could pave the way for a wave of TradFi entering DeFi, especially in the lending sector. With changes in policy and the rise of crypto lending funds, it seems that decentralized finance is gradually being recognized by traditional institutions.

📌 The question arises: Is this a signal for a revolution in DeFi lending? Or are there still potential risks from this model? Let's keep an eye on the upcoming developments! 🚀#anhbacong