Sid Powell, CEO and co-founder of Maple, brings an inspired Wall Street Lending model to the Crypto globe, using Bitcoin as the basis.
His company pioneers a new way to execute institutional loans, where it combines the best of traditional finances with the speed and liquidity of a blockchain network.
In a recent interview with TheStreet Roundtable, Powell described Maple’s innovative approach as ‘ACTIVA -supported lending in the chain’. The concept has already created the importance of people with a high NetNet-worthy investors who are looking for a reliable return in the digital asset space.
Powell insists to set up Bitcoin as the backbone of Global Lending
Maple lends to institutions such as trading companies and hedge funds, with the help of cryptocurrency, such as Bitcoin, as collateral. Leers receive stablecoins directly in their wallets, while the company keeps the collateral in liquid digital assets.
Afterwards, investors earn a return on those loans, just as they would do at traditional credit markets. Moreover, Powell claimed that Maple was granted more seductive over-collateral loans with 30-day repayment periods. Compare that with private credit markets, where loans are often unsecured and are locked for years.
He continued that everyone who had worked with promised effects or margins would understand that the most important advantage 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 dollar to Bitcoin. It is therefore concluded that if the loan fails, he could sell his digital assets in many places.
Maple implements a strategy to curb cryptocurrency risks
The collapse of 2022 of various crypto lenders, such as blockfi, has increased concern about risk management in the sector. Powell acknowledges these challenges and insists that Maple has built -in guarantees to reduce them.
To solve this, Maple offers yields on the same footing with a high efficiency, but with transparent margin policy and a safety net of liquid collateral by preservators of institutional quality such as Bitgo.
“We spend a lot of time explaining how we manage the margins,” Powell noted. “If Bitcoin drops in price, how long do we wait before we actively sell it? How long do we give someone to post more collateral or pay the loan?”
It is remarkable that Powell was dedicated to achieve goals that go beyond this one.
For him, achieving this goal was the first step to see more established financial giants such as Apollo or Ares. It is therefore possible to collaborate with companies such as JP Morgan to offer standardized Bitcoin-supported effects to pension funds and to combine the speed of cryptocurrencies with the stability of traditional finances.
Maple launches the Lend + Long product to reach BTC growth without exposure
According to reports published on January 27, decentralized credit platform MAPLE Finance introduced an on-chain structured yield product designed to expose financial institutions to Bitcoin.
Dubbeds Lend + Long, the product was aimed at the yield of funds, company treasures and institutional investors, so that they can be exposed to Bitcoin price valuation without direct exposure to the disadvantage.
According to Sid Powell, institutional investors have sought a way to win all the benefits of Bitcoin, but they do not want the stress of the volatility that goes with it.
Lend + Long offered structured exposure to Bitcoin without having to have the underlying asset. The product worked by buying Bitcoin call options and building yield from a high-interest liquidity pool run by Maple itself.
Maple Finance manages various credit pools that are tailored to various risky appetite. The Maple High Yield Secured Pool, for example, accepts a wide range of low market capitalization risky altcoins as collateral while the lenders pay higher interest rates. On the other hand, his blue-chip secure pole only accepts Bitcoin and Ether as collateral, which ensures a much more risk-avoiding ecosystem for lending.
To minimize the risk, all loans in Maple’s high yield, on-chain Pool, can be transferred, so that borrowers have to set more collateral than they borrow.
