Maple Finance: An on-chain asset management platform for institutional capital era

Key Summary

• With institutional investors entering the cryptocurrency market, the demand for asset management solutions that meet traditional financial standards has risen. Maple Finance has emerged to fill this gap, establishing its position as an on-chain asset management platform.

• Maple not only connects lenders and borrowers, but also conducts structured assessments of borrowers, strategically manages collateral, and operates more like a traditional asset management company. Recently, it launched a Bitcoin yield product that transforms Bitcoin from a passive holding into an income-generating asset.

• With institutions entering the crypto space, well-prepared asset management platforms like Maple Finance are expected to establish early institutional relationships, and this advantage may translate into long-term market leadership.

1. The demand for asset management in the crypto market

In the traditional financial sector, large asset holders usually rely on brokerage firms to provide professional asset management services. However, in the crypto space, managing large-scale assets is complex and prone to errors, requiring professionals and robust operational controls. Structured and reliable asset management institutions are scarce in the crypto market.

This gap presents significant opportunities for crypto asset management. Applying traditional financial verification models to digital assets could unleash tremendous market potential. As institutional participation deepens, the demand for professional, structured asset management becomes crucial.

As institutional participation accelerates, this demand becomes increasingly significant. A key example is Strategy's large-scale Bitcoin purchases that began in 2020. This momentum further intensified after the approval of spot Bitcoin ETFs in the United States and Hong Kong in 2024.

Therefore, the market once dominated by retail investors is approaching its limits. The current environment requires professional asset management solutions tailored to institutional needs.

Maple Finance was created to meet this demand. Founded in 2019, the company combines traditional financial expertise with blockchain infrastructure and has steadily established itself as a leading on-chain asset management provider.

2. on-chain asset management: Maple Finance

Maple Finance has a clear and concise structure. It facilitates credit-based on-chain lending by connecting fund providers with institutional borrowers.

This raises a key question: In traditional finance, asset management typically involves diversifying a client's asset portfolio across stocks, bonds, real estate, and other instruments to manage risk and achieve long-term value growth.

In this context, can platforms specialized in lending intermediaries be considered true asset management companies?

After examining the actual operation of Maple Finance, the answer becomes clear. The platform employs professional asset management practices that go beyond simple loan matchmaking. It conducts thorough credit assessments of institutional borrowers and makes strategic decisions on fund allocation and loan terms.

Throughout the loan process, Maple also engages in active capital management, utilizing mechanisms such as collateralized staking and rehypothecation. This operational model clearly transcends basic lending intermediaries and is closer to the functions of modern asset management companies.

3. The core participants and operational mechanism of Maple Finance

Maple Finance's role as an on-chain asset management institution stems from its clear participant structure and systematic operational framework. Its product model is built around three core participant roles:

This structure reflects the existing protection mechanisms in traditional finance. In the banking corporate loan business, depositors provide funds, companies apply for loans, and internal credit teams assess their financial health. Shareholders participate in governance decisions that influence the direction of the institution.

The operation of Maple Finance is similar. When a borrower applies for a loan, Maple's credit team sets the terms based on the collateral ratio and asset quality. Lenders provide funding, functioning similarly to depositors, while $SYRUP holders take on a governance role similar to that of shareholders, participating in decision-making at the protocol level.

A key distinction is that $SYRUP holders also receive staking rewards funded by the protocol's revenue. It is noteworthy that 20% of the revenue is allocated for buybacks to support these rewards.

Consider a specific example. The main market maker TIGER 77 requires $10 million in operating capital to expand trading positions during periods of heightened market volatility. However, traditional banks rejected the request on the grounds of limited trust in the cryptocurrency space, resulting in TIGER 77 being unable to secure the necessary funds.

Maple Finance's internal lending and advisory division, Maple Direct, bridges this gap through its high-yield corporate products. Qualified investors, recognizing Maple Direct's performance, deposit 10 million USDC into the lending pool.

When TIGER 77 applies for a loan, Maple Direct conducts a comprehensive credit assessment, reviewing the company's financial condition, operational history, and risk profile. After the assessment, it approved a loan of 10 million USDC, with Ethereum as collateral, at an interest rate of 12.5%.

After the loan is executed, income distribution begins. TIGER 77 pays monthly interest, of which Maple Direct retains 12% as a management fee. The remaining interest is distributed to qualified investors.

Here, Maple's differentiation becomes clear. It goes beyond basic loan intermediaries, actively managing collateral, including improving capital efficiency through secondary lending and collateral staking. In some cases, Maple also builds loans based on the corporate guarantee of the parent company ( instead of traditional collateral ).

In fact, the services provided by Maple can compete with traditional financial institutions. It actively manages funds, rather than just connecting lenders and borrowers. This approach reinforces Maple's positioning as a trusted institutional-grade asset management company, rather than just another DeFi lending platform.

4. The core product of Maple Finance

4.1. Maple Institutional

Maple Finance has established its position as a legitimate on-chain asset management institution by offering a diversified and structured product portfolio. Its products are mainly divided into two categories: lending products and asset management products, each designed to match investors with different risk tolerances and return objectives.

The first category of lending products includes Maple's blue-chip and high-yield products. The blue-chip product line is designed for conservative investors who prioritize capital preservation. It only accepts mature assets such as Bitcoin and Ethereum as collateral and follows strict risk management practices.

In contrast, high-yield products target investors seeking higher returns and willing to take on greater risks. Their core strategy involves actively managing over-collateralized assets to generate additional income through staking or secondary lending, rather than merely holding the collateral.

Maple Finance's second category of product asset management began with its BTC yield product. This product was launched earlier this year in response to the growing demand for Bitcoin from institutions. Its value proposition is simple: institutions do not need to passively hold Bitcoin, but can deposit BTC to earn interest, generating returns from existing assets.

This naturally raises a question: if institutions can directly buy and hold Bitcoin, why don't they manage it themselves? The answer lies in practical limitations, mainly the lack of the technological infrastructure or operational expertise to securely generate returns.

Maple Finance's Bitcoin yield product utilizes dual staking provided by Core DAO. In this model, institutions securely store their Bitcoin in institutional-grade custodians and earn staking rewards by committing to not use their assets for a predetermined period. In short, institutions securely lock their assets and earn returns.

However, the actual operational process is more complex than it seems. Behind the simple facade of "earning yields on Bitcoin" lies a series of technical and operational steps, including signing contracts with custodial institutions, participating in Core DAO staking, and converting $CORE staking rewards into cash. Each step requires expertise, which most institutions do not possess internally.

This reflects a familiar pattern in traditional finance. While companies can manage assets directly, they often rely on specialized asset management firms to carry out this task efficiently and securely. In the crypto space, the demand for such expertise is even greater, considering the additional layers of technological complexity, regulatory oversight, security, and risk management.

Starting with Bitcoin yield products, Maple Finance plans to expand into a broader range of asset management products. This strategy is crucial for bridging the gap between institutional investors and the crypto market, addressing a long-standing unmet demand.

By providing comprehensive and professionally managed services, Maple enables institutions to pursue stable returns from digital assets without deviating from their core business focus.

4.2 syrupUSDC

The products discussed so far are primarily aimed at qualified investors, limiting access for general retail participants. To address this issue, Maple Finance has launched syrupUSDC and syrupUSDT, which are liquidity pools for retail users built on top of Maple's existing lending infrastructure and borrower network.

The funds raised through syrupUSDC will be lent to institutional borrowers from Maple's blue-chip and high-yield pools, who undergo the same credit assessment process as other Maple products. The interest generated from these loans is directly distributed to syrupUSDC depositors.

Although the structure is similar to the institutional products of Maple, the syrup pool is managed independently. This design reduces the entry barrier for retail users while maintaining the operational rigor of institutional products, thereby improving accessibility without compromising structural stability.

Although the yield is slightly lower than the level offered to institutional participants, Maple has introduced a "Drips" reward system to enhance long-term engagement. Drips provide additional token rewards, compounded every four hours in the form of points. At the end of each season, points can be converted into SYRUP tokens. Through this incentive mechanism and proactive fundraising strategy, Maple Finance has attracted approximately $1.9 billion in USDC and USDT.

In summary, syrupUSDC/USDT extends institutional-grade products to retail investors, combining accessibility with a structured reward mechanism. By integrating Drips, Maple demonstrates a profound understanding of the dynamics of Web3 participation, providing a model that encourages ongoing engagement while maintaining financial discipline.

5. Key Differentiating Advantages of Maple Finance

The core differentiated advantage of Maple Finance lies in the implementation of its fully on-chain institutional-grade system. Maple does not simply rely on algorithmic lending protocols, but combines on-chain infrastructure with human expertise to create an environment that meets institutional standards.

5.1. Services developed by traditional financial experts

This distinction begins with the composition of the Maple team. Many on-chain financial platforms lack professionals with a traditional finance background. Although such experience is not absolutely necessary, it is difficult to provide truly institutional-level services without a deep understanding of institutional investors' needs and risk expectations.

This is exactly what sets Maple apart. Its team includes professionals with decades of experience in traditional finance and credit assessment. Their expertise enables rigorous credit evaluations and robust risk management, forming the trust foundation required by institutional clients.

The background of the Maple leadership team helps to explain why it has gained the trust of institutional investors.

CEO Sidney Powell brought asset management experience from the National Australia Bank and Angle Finance. Co-founder Joe Flanagan was a consultant at PwC, focusing on corporate financial analysis, and later served as the Chief Financial Officer of Axsesstoday.

In terms of technology, Chief Technology Officer Matt Collum was a senior engineer at Wave HQ and is the founder of the fintech startup Every. Chief Operating Officer Ryan O'Shea was responsible for strategic work at a certain trading platform, gaining direct experience in the cryptocurrency field.

A broader team includes professionals with both financial and technical backgrounds. Capital Markets Director Sid Sheth was previously responsible for institutional sales at Deutsche Bank. Product head