Bitwise Ventures Into DeFi With Maple Finance Partnership

According to CoinDesk, crypto asset manager and ETF provider Bitwise has ventured into decentralized finance (DeFi) through a strategic partnership with on-chain credit specialist Maple Finance. This marks Bitwise's first allocation into DeFi, utilizing a bitcoin-backed lending product offered by Maple. Although the exact size of the allocation remains undisclosed, this move signifies a notable advancement in the adoption of on-chain credit by institutional investors, as highlighted by Maple CEO Sid Powell. The bitcoin-backed lending product is accessible to accredited investors in the United States. As digital representations of real-world assets increasingly integrate into traditional finance, companies are exploring beyond conventional options like tokenized Treasury Bills. This shift is particularly relevant as interest rates decline while DeFi yields experience a resurgence. Bitwise is optimistic about the future of asset management transitioning on-chain, where transparency and unique opportunities are more prevalent than in traditional finance. Powell emphasized that the yield from lending against bitcoin is a novel product not available in traditional finance, and Maple has structured it to be appealing to institutional asset managers. The collaboration between Bitwise and Maple Finance involved extensive due diligence and preparation. Powell noted that the process took approximately 12 months of discussions and background work between the teams. Bitwise's thorough approach included collaboration with their operations, legal and compliance, risk, and tax advisory teams. Beyond its prominent crypto ETFs, Bitwise manages over $12 billion in client assets across various investment vehicles, including separately managed accounts, private funds, hedge fund strategies, and staking.