US persons and business entities may not have access to the offering.
Blockchain-based lender Maple Finance has introduced a United States Treasury pool specifically designed for non-US accredited investors. according to a blog post Where it shared the announcement, the new cash management pool will allow investors to invest in one-month US Treasury bills (T-bills). However, US persons and business entities may not have access to the offering.
The post also confirms that the pool is structured in a special purpose vehicle (SPV) manner, with crypto hedge fund Room40 Capital serving as the sole borrower. That is, the pool aggregates all investors’ stablecoins and lends them to Room40 Capital, which then receives income by investing them in T-Bills.
Meanwhile, Maple developers have praised the design of the pool. Firstly, the firm claims that the onboarding process is seamless and does not take more than 10-15 minutes to complete. And the interest starts piling up almost immediately after the deposit as there is nothing like a lock-up period.
Additionally, Maple insists that all pool assets are fiduciary as they are held in a standalone SPV that is “custodial by a regulated prime broker.” This means that the lender is always privy to information about your assets and can recover them in full under unforeseen circumstances. In line with this claim, Maples wrote:
“Borrowers have a real-time view of the borrower’s portfolio of assets held with a regulated broker and interest details can be downloaded at any time.”
Maple Finance is keen to offer a safe investment option
Maple’s new offering comes at a time when crypto investors are slowly moving towards traditional financial (TradeFi) assets. But the major reason for this change can be attributed to the huge risks associated with crypto lending. least, series of mistakes And bankruptcy in 2022 proved their fears.
Furthermore, crypto investors are interested in earning returns that stablecoins typically do not provide. At the same time, crypto lending also does not feel secure enough. Hence users have got a handy alternative to traditional markets whose yields have gone up recently. This is due to the increase in interest rates by central banks to combat global inflation.
Interestingly, the ground reality has now prompted several blockchain protocols such as Maple Finance to improve. Most of them have started offering tokenized versions of real-world assets (RWAs) such as government bonds.
Without a doubt, short term US Treasuries are considered one of the safest investments in the world. So, it’s clear that Maple wants to help investors earn profits on their passive stablecoins with very little risk.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He firmly believes in the potential of digital assets and takes every opportunity to reiterate this. He is also an avid reader, a researcher, an astute speaker and a budding entrepreneur. Although away from crypto, Mayowa’s distractions include discussing soccer or world politics.
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