The institutional loan system based on Bitcoin as collateral which Sid Powell created through Maple Finance brings the Wall Street model to cryptocurrency markets.
The company implements financial industry methods with blockchain technology capabilities while maintaining its speed and liquidity.
Bitcoin as the foundation for institutional lending
Through its loan program, Maple Finance provides financial support to trading firms and hedge funds using Bitcoin cryptocurrency deposits as lending assets. When borrowers obtain stablecoins through their wallets, Maple Finance maintains the collateral deposited in liquid digital assets. The lenders earn returns from these mortgage agreements that parallel traditional banking market yield payments.
According to Powell, Maple Finance delivers over-collateralized loan products with a 30-day redemption duration, while private credit markets include long-term locked unsecured loans. He explains how cryptocurrencies provide better liquidity since selling a house might take months, but large Bitcoin amounts can be sold within hours.
Risk management in cryptocurrency lending
Several crypto lenders, including BlockFi, went bankrupt in 2022, intensifying concern about management risks across the sector. Powell recognizes the challenges, explaining that Maple uses protective measures to reduce their impact. The platform matches high-yield credit rates while being backed up by transparent margin rules and liquidators from institutional-grade custodial companies like BitGo.
Powell Maple puts substantial effort into managing margins by deciding their response to Bitcoin price declines and establishing time limits for borrowers to provide additional collateral or repay loans. Through its objective achievements Maple becomes competitive with established financial organizations and seeks opportunities to work with firms such as J.P. Morgan for standardized Bitcoin-backed securities aimed at pension funds which combine cryptocurrency speed with traditional finance stability.
Introduction of ‘Lend + Long’ product
In January 2025 Maple Finance introduced “Lend + Long” to the cryptocurrency market as an on-chain product that exposed institutions Bitcoin through its price growth without exposure to losses. This investment product specifically addresses yield funds, corporate treasuries, and institutional investors to enable them to experience Bitcoin price growth while controlling its volatility. The Maple High Yield Secured Pool allows investors to receive base yield rewards and use a portion of that earnings to acquire Bitcoin call options that generate Bitcoin price appreciation while remaining independent from the physical ownership of Bitcoin. Maple operates multiple lending pools that serve borrowers with varying degrees of risk tolerance while maintaining each high-yield on-chain pool loan secured by over-collateralization that needs borrowers to deposit assets worth more than the loan amount.