United States individuals and business entities may not have access to the Offer.
Blockchain-based lender Maple Finance has introduced a pool of US Treasuries designed specifically for non-US accredited investors. According to a blog post where he shared the announcement, the new cash management pool will allow investors to invest in one-month US Treasury bills (T-bill). However, US individuals and business entities may not have access to the Offer.
The post also confirms that the pool is structured as a special purpose vehicle (SPV), with crypto hedge fund Room40 Capital as the sole borrower. In other words, the pool collects all the stablecoins from investors and lends them to Room40 Capital which then generates returns by investing in treasury bills.
Meanwhile, Maple developers praised the pool’s design. First, the company claims that the onboarding process is seamless and takes no more than 10-15 minutes. And interest starts accumulating almost immediately after you deposit because there’s no such thing as a lock-up period.
Additionally, Maple insists that all assets in the pool are securely held as they are held in a standalone SPV that is “curated by a regulated prime broker.” This means that lenders are always aware of information regarding their assets and can recover them in full in unforeseen circumstances. Consistent with this claim, Maple wrote:
“Lenders have a real-time view of the borrower’s portfolio of assets held with a regulated broker and interest statements can be downloaded at any time.”
Maple Finance wants to offer a safe investment option
Maple’s new offering comes at a time when crypto investors are gradually shifting towards traditional financial assets (TradFi). But the main reason for this change can be attributed to the huge risks associated with crypto lending. At least the series of defaults and insolvencies in 2022 proved their fears.
Additionally, crypto investors are interested in earning returns, which stablecoins typically do not offer. While crypto lending doesn’t feel secure enough either. Thus, users have recently found an easy choice in traditional markets whose yields have recently increased. This is because central banks have raised interest rates to fight global inflation.
Interestingly, the reality on the ground has now led several blockchain protocols such as Maple Finance to improvise. Most of them have started offering tokenized versions of real-world assets (RWAs) such as government bonds.
Without a doubt, the short-term US Treasury is considered one of the safest investments in the world. It is therefore obvious that Maple wants to help investors earn returns on their inactive stablecoins with very low risk.
Mayowa is a crypto enthusiast/writer whose conversational nature is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is a reader, a researcher, a knowledgeable speaker and also a budding entrepreneur. Away from crypto, however, Mayowa’s whimsical pastimes include football or discussions of global politics.