Sid Powell, CEO and co-founder of Maple, is reshaping institutional lending by integrating cryptocurrency, particularly Bitcoin, into the process.
His platform provides asset-backed loans on-chain, a model that has attracted attention from high-net-worth individuals and fixed-income investors. Powell explained that Maple offers loans to institutions like trading firms and hedge funds, using crypto as collateral.
Borrowers receive stablecoins directly, while Maple holds the collateral in liquid digital assets, allowing investors to earn yield much like traditional credit markets. Unlike traditional lending, Maple’s loans are over-collateralized and redeemable within 30 days.
This model offers significant advantages over traditional lending, especially with crypto’s liquidity. As Powell points out, selling large amounts of Bitcoin is far quicker than selling physical assets like real estate.
In the event of a loan default, assets can be liquidated quickly, ensuring a smoother process. Risk management is key for Maple, especially following high-profile crypto lender collapses like BlockFi. Powell highlighted the use of institutional-grade custodians like BitGo and clear margin policies to ensure safety, even amid crypto’s volatility.
Looking ahead, Powell sees this service as a stepping stone to competing with traditional finance giants like Apollo and Ares. His long-term goal is to partner with firms like J.P. Morgan to distribute Bitcoin-backed securities to institutional investors, blending the speed of crypto with the stability of traditional finance.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/bitcoin-backed-loans-set-to-disrupt-institutional-lending-says-maple-ceo/