Maple Finance, a blockchain-based credit marketplace, has set its sights on the Asia-Pacific (APAC) region, announcing a successful $5 million investment round on Tuesday. The fundraising was led by BlockTower Capital and Tioga Capital, with participation from Cherry Ventures, The Spartan Group, GSR Ventures, and Veris Ventures, among others. Notably, existing investors including Maven 11 and Framework Ventures also increased their capital commitment.
Maple Finance secures $5 million in investment
CEO Sidney Powell expressed the significance of this funding round, highlighting that it marks a pivotal moment in Maple Finance’s journey as it gears up for expansion in the APAC region. Powell emphasized the company’s strategic growth plan and its mission to leverage partnerships and technology to facilitate compliant lending and borrowing adoption across key APAC markets, including Singapore, Japan, Hong Kong, and Korea.
The move into Asia is a testament to the region’s increasing importance within the digital asset landscape. Several Asian countries have been proactive in establishing clear regulatory frameworks for cryptocurrency firms, a sharp contrast to the regulatory uncertainty often seen in other regions, notably the United States. Recently, Hong Kong granted its first licenses to trading platforms under its new crypto regulations, while Singapore’s central bank introduced a regulatory framework for stablecoins.
This regulatory clarity has attracted international players such as U.S-based exchange Gemini, which expanded its presence in the region by opening a hub in Singapore. Maple Finance’s expansion initiative comes on the heels of its recovery from a significant crypto deleveraging event last year. The platform faced challenges following the collapse of FTX, which resulted in the accumulation of distressed loans worth $54 million.
The company is eyeing evolution in a dynamic crypto landscape
In April, Maple Finance introduced a blockchain-based U.S. Treasuries facility, which has garnered $22 million in deposits since its launch. The platform also established a direct lending arm aimed at supporting web3 firms in June. Although the total value locked on Maple has decreased from its peak of $938 million in May last year to $88 million, according to DefiLlama, the platform’s commitment to innovation and expansion remains evident.
In a separate development, Maple Finance recently announced its renewed use of the Solana (SOL) network after an eight-month hiatus. This move signifies the platform’s commitment to broadening its stablecoin cash management offerings to the network. Solana-based protocols including Solend, Drift, and UXD Protocol have already committed to deposit funds on the network, reinforcing Maple’s return to Solana.
Previously limited to the Ethereum network, Maple Finance’s facility enables accredited investors, companies, and decentralized autonomous organizations (DAOs) to securely park their stablecoin assets in one-month U.S. Treasury bills, yielding an annual return of 4-5%. This initiative aligns with the company’s pursuit of providing attractive yield-generating options to its user base. The platform’s stablecoin cash management offering on Solana has attracted $22 million in deposits since its launch in April.
Maple Finance’s decision to expand into the APAC region reflects the growing global interest in digital assets and decentralized finance. With its innovative approach to credit and lending in the crypto space, Maple Finance is poised to contribute significantly to the evolution of the financial landscape, particularly in a region where regulatory clarity and technological advancements are driving digital innovation.
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