Bitwise and Maple Finance bring DeFi lending to institutional clients
DeFi lending to institutional clients
Crypto asset manager and exchange-traded fund (ETF) provider Bitwise has announced its first institutional allocation to decentralized finance (DeFi) through a strategic partnership with on-chain credit specialist Maple Finance.
The collaboration provides institutional investors access to compliant, blockchain-based lending options, signaling a shift from traditional fixed-income products to structured digital asset investments, according to the Cryptopolitan.
Institutional capital embraces transparent, on-chain lending
The move comes as financial institutions increasingly explore blockchain-based solutions that offer transparency, efficiency, and yield opportunities. Unlike centralized crypto lenders that faced high-profile collapses, such as Celsius and BlockFi, Maple Finance operates entirely on-chain, reducing counterparty risk and increasing transparency.
Since its 2021 launch, Maple Finance has facilitated both over- and under-collateralized loans backed by digital assets. More recently, it has focused on structured lending pools that cater to different risk appetites.
Institutional investors can opt for lower-risk Bitcoin and Ethereum-backed loans or pursue higher yields through pools collateralized by assets like Solana and XRP. The protocol currently manages approximately $620 million in total value locked (TVL).
“Bitwise is incredibly optimistic about the future of asset management moving on-chain,” said Maple Finance founder Sid Powell, emphasizing that blockchain-based finance offers enhanced transparency and new opportunities unavailable in traditional markets.
Bitwise, which manages $12 billion in client assets, has been expanding its digital asset offerings, including alternative crypto ETFs. Its collaboration with Maple Finance underscores the growing institutional interest in DeFi as blockchain technology matures and regulatory frameworks evolve.
As interest rates shift and DeFi yields recover, the partnership highlights a broader trend: institutional capital is steadily embracing decentralized financial products, marking a significant evolution in digital asset investment strategies.
Meanwhile, Bitwise CEO Hunter Horsley predicts tokenization, AI, and “Bitcoin Standard Corporations” will fuel market growth in 2025. He highlights tokenization's potential to revolutionize equity markets by giving smaller businesses access to capital typically reserved for larger firms.
