The post Maple CEO brings Wall Street-style institutional lending on-chain with Bitcoin-backed loans appeared on BitcoinEthereumNews.com.

Sid Powell, CEO and co-founder of Maple, is bringing an inspired Wall Street lending model to the crypto sphere, using Bitcoin as the basis. His company is pioneering a new way to conduct institutional lending where it combines the best of traditional finance with the velocity and liquidity of a blockchain network. In a recent interview with TheStreet Roundtable, Powell described Maple’s innovative approach as “asset-backed lending on-chain.” The concept has already piqued the interest of high-net-worth individuals and fixed-income investors seeking reliable returns in the digital asset space. Powell pushes to establish Bitcoin as the backbone of global lending  Maple lends to institutions such as trading firms and hedge funds, using cryptocurrency, such as Bitcoin, as collateral. Borrowers receive stablecoins directly into their wallets, while the firm holds the collateral in liquid digital assets. Afterwards, investors earn a yield on those loans, just as they would in traditional credit markets. In addition, Powell claimed that Maple provided more enticing over-collateralized loans with 30-day redemption periods. Contrast that with private credit markets, where loans are frequently unsecured and locked for years. He continued that anybody who had worked with pledged securities or margin lending would understand that the main benefit of cryptocurrencies is liquidity. Moreover, Powell stated that it takes six months to sell a house but only a few hours to sell a billion dollars worth of Bitcoin. Therefore, it is concluded that if the loan does not work out, he could sell his digital assets in many places. Maple implements a strategy to curb cryptocurrency risks The 2022 collapse of several crypto lenders, such as BlockFi, has heightened concerns about risk management in the sector. Powell acknowledges these challenges and insists that Maple has built-in safeguards to mitigate them. To solve this, Maple provides yields on par with high-yield…

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Filed under: News - @ March 29, 2025 9:21 am