Crypto Asset Manager and ETF provider Bitwise has made his first allocation in Decentralized Finance (Defi) through a partnership with on-chain credit specialist Maple Finance, the companies said on Thursday.
The allocation of Bitwise, the size of which has not been announced, is using a Maple Bitcoin-supported credit product, and represents an important milestone in the approval of unchain credit by institutional allocers, said Maple CEO Sid Powell. Maple’s BTC Backed Lending Product is available for accredited investors in the US
As digital versions of real assets become a normal part of traditional finances, companies look beyond things like Tokenized Treasury accounts, in particular because the interest rates have fallen, while Defi revenue see a revival.
Bitwise is a strong supporter of the future of asset management that exercise on-chain, said Powell, where products are transparent and companies can find opportunities that do not exist in traditional finances.
“In this case, the proceeds from borrowing Bitcoin is not a product that is already available somewhere else in traditional finances,” Powell said in an interview. “Maple packaging this product in a way that can be used by institutional assets managers.”
The move required Bitwise to do a pretty serious due diligence and background work, Powell said.
“It was about 12 months of discussions and work in the background between our teams to bring this together,” he said. “Bitwise is incredibly thorough and this process included working with their operating team, their legal and compliance team, their risk team, as well as tax advisers.”
In addition to his high -profile crypto ETFs, Bitwise has more than $ 12 billion in customer assets on separately managed accounts, private funds, strategies for hedge funds and deployment.