Maple Finance, a crypto lending platform, has launched a new product — a Cash Management Pool to allow non-U.S. accredited investors and entities to access U.S. Treasury Bills.
According to the April 19 announcement, the Cash Management Pool aims to simplify access to U.S. Treasury bill yields while meeting the liquidity, risk, and accounting requirements of customers.
Treasury management pool unavailable to U.S. investors
This offering is not open to individuals or organizations from the U.S. The fund will generate yield by investing in short-term U.S. government bonds and reverse purchase agreements, deducting expenses, and lending the resulting funds to a borrower through a specialized entity known as a special purpose vehicle (SPV). In this case, the sole borrower is Room40 Capital, a cryptocurrency hedge fund.
The firm claims the pool assets are securely held in a standalone SPV, which is managed by a regulated prime broker, ensuring that lenders have full control over their assets.Â
The Cash Management Pool offers real-time monitoring of Treasury holdings secured with a custodian and enables lenders to make next-day withdrawals.
“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 said it ensures the safety of lender funds by implementing a tri-party agreement that involves the Maple Foundation, the borrower, and the broker. In the event that a borrower fails to repay their loan, the Maple Foundation will declare the loan in default and contact the broker.
This allows them to access the brokerage account and its T-bills, and send the funds on-chain to repay the loan.
Maple Finance — with around $1.9 billion worth of loans originated since its launch — is available on both the Ethereum and Solana blockchains.
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