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US individuals and business entities may not have access to the offering.
Blockchain-based lender Maple Finance has introduced a United States Treasury pool designed specifically for non-US accredited investors. According to a blog post where it 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 offering.
The post also confirms that the pool is structured in a special purpose vehicle (SPV) manner, with crypto hedge fund Room40 Capital serving as the sole borrower. That is, the pool collects all investors’ stablecoins and lends them to Room40 Capital which then sources yields by investing in T-bills.
Meanwhile, Maple developers have heaped praises on the design of the pool. Firstly, the firm claims that the onboarding process is seamless and takes no more than 10-15 minutes to complete. And interests begin to pile up almost immediately after the deposit as there is nothing like a lock-up period.
Additionally, Maple insists that all pool assets are safely secured as they are held in a standalone SPV which is “custodied by a regulated prime broker.” This means that lenders are always privy to information regarding their assets and can fully recover them in unexpected circumstances. In line with this claim, Maple wrote:
“Lenders have a real-time view into the borrower’s portfolio of assets held with a regulated broker and interest statements can be downloaded at any time.”
Maple Finance Keen on Offering a Safe Investment Option
Maple’s new offering comes at a time when crypto investors are gradually moving toward traditional financial (TradFi) assets. But the major reason for this shift can be attributed to the huge risks associated with crypto lending. At least, the series of defaults and insolvencies in 2022 proved their fears.
Also, crypto investors are interested in earning yields, which stablecoins generally do not offer. Whereas, crypto lending does not feel safe enough either. So users have recently found an easy choice in traditional markets whose yields have risen recently. This is due to central banks hiking interest rates to combat global inflation.
Interestingly, the reality on the ground has now led multiple blockchain protocols such as Maple Finance to improvise. Most of them have started offering tokenized versions of real-world assets (RWA) such as government bonds.
Without a doubt, the short-term US Treasury is considered one of the safest investments in the world. So, it is evident that Maple wants to help investors to earn yields on their idle stablecoins with very low risk.