Crypto asset manager and ETF provider Bitwise has taken a significant step into decentralized finance (DeFi) by partnering with on-chain credit specialist Maple Finance. This move marks Bitwise’s first allocation into DeFi, leveraging a bitcoin-backed lending product on Maple.
Institutional Adoption of On-Chain Credit
Bitwise’s allocation, though undisclosed in size, represents a milestone for institutional involvement in DeFi. The Maple BTC-backed lending product, available to accredited investors in the U.S., offers a unique investment opportunity that doesn’t exist in traditional finance.
According to Maple CEO Sid Powell, this step highlights the growing interest in on-chain credit solutions as firms move beyond tokenized real-world assets like Treasury Bills. The shift is particularly relevant as interest rates decline while DeFi yields rise.
The Appeal of Bitcoin-Backed Lending
Bitwise sees on-chain asset management as the future, emphasizing transparency and innovative financial products. Unlike conventional markets, the yield from lending against bitcoin is a novel opportunity, Powell noted.
“Maple packages this product in a way that’s consumable by institutional asset managers,” he said in an interview, underscoring its institutional-grade structure.
A Year-Long Due Diligence Process
Bitwise’s entry into DeFi wasn’t an overnight decision. The firm conducted an intensive 12-month due diligence process, working closely with Maple’s team. This involved risk assessments, legal and compliance reviews, operational checks, and consultations with tax advisors.
Powell highlighted that Bitwise’s rigorous approach reflects its commitment to risk management and compliance, setting a benchmark for institutional adoption of DeFi.
Bitwise’s Expanding Crypto Footprint
Beyond its high-profile crypto ETFs, Bitwise manages over $12 billion in client assets, spanning separately managed accounts, private funds, hedge fund strategies, and staking.
The firm’s DeFi allocation signals a broader institutional shift towards blockchain-based finance, reinforcing the role of bitcoin-backed lending in shaping the future of asset management.
