- Maple Finance launched a cash management pool investing in one-month U.S. Treasury bills.
- The pool caters to accredited investors, crypto firms, and DAO treasuries, providing low-risk yield on idle stablecoins without a lock-up period.
- Maple Finance has facilitated approximately $1.9 billion in loans since its inception.
In a recent blog post, Maple Finance, a blockchain-based lending protocol, announced its latest cash management pool which invests in one-month U.S. Treasury bills. The facility offers investors an annual yield of 3.2% on stablecoin deposits, as the current one-month Treasury bill rate stands at around 3.7%, minus the 0.5% management fee.
“This pool lets stablecoin holders focus on their core business activities whilst we take care of the technicalities. The access to banking and deposit services for startups has narrowed so the importance of having this service onchain cannot be overstated. We’re really proud to bring this to market at the perfect time with partners that share the same commitments.” Sid Powell, CEO and Co-Founder, Maple Finance.
The new Maple Finance pool functions as a special purpose vehicle (SPV) that collects stablecoins from investors and lends them to Room40 Capital, a crypto hedge fund, to invest in Treasury bills. This pool allows accredited investors, crypto firms, and decentralized autonomous organization (DAO) treasuries to earn a yield on idle stablecoins with low risk, given that short-term U.S. Treasurys are considered among the safest investments.
The protocol emphasizes that there is no lockup period required for deposits before withdrawal, making the pool ideal for cash management in stablecoins. Maple assures that the entirety of pool assets are held within a distinct SPV that is under the custody of a regulated prime broker. Furthermore, Lenders are granted complete recourse overall assets.
The onboarding process is quick, taking only 10-15 minutes to complete, with interest accruing immediately upon deposit and no lock-up period. Lenders can see the borrower’s portfolio stored with a regulated broker in real-time and can view interest statements at any time.
Currently, Maple Finance operates on the Ethereum and Solana blockchains, originating approximately $1.9 billion in loans since its inception. However, due to their status as securities, derivatives based on U.S. Treasury bills cannot be sold to U.S. investors unless first registered with the Securities and Exchange Commission or exempted from registration requirements.