Maple finance joins forces with Celsius in order to launch a wETH lending pool with the pool promising to enable greater finance for the traditional corporations and institutions that are looking to capitalize on emerging other opportunities in the DEFI space as we can see furhter in today’s blockchain news.
The digital asset lending platform Celsius became the first pool delegate from the centralized markets to deploy the crypto-centric lending service on MAple Finance which will utilize the latter’s smart contract and blockchain infrastructure to facilitate the $30 million pool for the institutional investors. Celsius succeeds the pool delegates Orthogonal trading, BlockTower, Maven 11, and Alameda research in partnering with Maple on the endeavor. The introduction of Wrapped ETH is set to complement the accessibility and trade of Circle’s stablecoin USD Coin and will enable the investors to utilize the asset across the array of tradign components like lending, borrowing, and staking.
Build, ship, 🥞, repeat! https://t.co/BN9zwCKeBa
— Maple Finance (@maplefinance) February 18, 2022
The founder of Maple Finance Sidney Powell uncovered the financial nuances that the interested institutional investors have to be aware of before engaging with the pool. Powell also noted that the institutions are working directly with the Celsius team and to borrow from the pool while the Borrowers have to pass through the Celsius KYC and credit assessments:
“In this instance, digital asset institutions Wintermute and Amber have already been doing business on Maple, so have an on-chain credit reputation, and signed a Master Loan Agreement (MLA) too. This, plus Celsius’ established processes, means onboarding has been streamlined for all parties.”
Maple Finance said that the initial syndicated loan of $47.25 million was issued to Alameda back in 2021 and today it exceeded $100 million with the company being the sole borrower in the transaction. Abra deposited $25 million with other projects including the play to earn horse racing game Zed Run as well as CoinShares. The syndicated loan is a term that denotes the process by financial institutions from the banking industry and extends teh finance to private corporations on an individual basis or as a part of the consortium. The capital afforded to the companies is seen as the form of a loan and is subject to inflationary payback methods dependent on the case complexity and evaluated risks.
A number of banking institutions participated in blockchain-centric syndicated loans and traversed over the DEFI space including ING and BNP Paribas which were two of the seven major banks to partner with R3 back in 2017 and implement a distributed ledger technology model.
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