In this episode, I sit down with Martin de Rijke, Head of Growth at Maple Finance.
Founded in 2019 in Melbourne, Australia, Maple Finance is a DeFi lending platform that has weathered the storms of the last crypto cycle. After surviving the crash, the company adjusted its operations and is now growing rapidly with businesses coming from the U.S., Europe and Asia. Maple is one of the first two crypto-native companies, alongside FalconX, to recently secure a capital facility from Cantor Fitzgerald, a clear sign that TradFi is making its way into DeFi.
This is a packed conversation, during which we also reflect on the previous cycle and the lessons learned. Maple has emerged stronger from the last downturn and is now striving to become an onchain version of a traditional asset manager, think BlackRock or Apollo.
Following the timestamps, you’ll also find a simplified version of the conversation transcript.
(00:56) Opening Remarks and Self-introduction
(02:40) Introduction to Maple Finance
(04:05) Maple's Partnership with Cantor Fitzgerald
(08:22) Maple's Business Explained in Detail
(15:05) Risk Management Mechanism for Underwriting Loans
(21:33) On-chain Pool for Lenders and Yield-bearing SyrupUSDC
(25:30) Built on Ethereum SyrupUSDC also Live on Solana
(26:21) Comparing Ethereum vs.other Chains Regarding TVL
(27:17) Growth Strategies and New Products
(31:47) Lessons Learned from the Last Cycle and Outlook for DeFi Lending
(33:58) Differences in Borrowing & Lending between this Cycle and the Last Cycle
(34:34) Implication of U.S. Stablecoin Regulations and whether non-USD Stablecoins Matter
(35:46) Closing Remarks
Coco: Martin de Rijke, Head of Growth at Maple Finance, welcome to my podcast. How would you introduce Maple Finance to someone unfamiliar with it?
Martin: Maple Finance is an asset management platform onchain. We take in stablecoins and Bitcoin from clients and generate yield on those assets. On the stablecoin side, we take in USDC and USDT and we lend to institutions. The loans are over-collateralized. On the Bitcoin side, we have a Bitcoin staking product in partnership with Core.
We see ourselves as an asset manager, similar to BlackRock in traditional finance, managing assets for clients but on the blockchain. It ensures full transparency. Users can verify assets, collateral, loan terms, and portfolio management globally.
We have seen strong growth. Starting the year with $400 million in assets, we now have $2 billion in assets as of the recording.
Coco: Tell me about the partnership between Maple and Cantor Fitzgerald.
Martin: It’s one of the first times a big TradFi firm branches into Defi, validating TradFi’s movement onchain through partnerships with Defi platforms. It shows Maple’s processes hold up to TradFi standards. Cantor Fitzgerald allocated $2 billion to this initiative, presenting massive growth opportunities. We aim to onboard assets and grow partnerships with banks and asset managers.
Coco: Cantor Fitzgerald creates a fund backed by Bitcoin and lends to Maple Finance for higher yield. Is this correct?
Martin: Yes, they provide capital for yield generation, which we pass back to them. It’s like a wholesale facility, where we divide a loan from Cantor among borrowers. They act as capital suppliers while we generate yield through good deals at attractive interest rates with high-quality borrowers.
Coco: Can you explain Maple's business, including lending, yield earning, and Syrup?
Martin: Starting with the supply side, we take in stablecoins from suppliers who want to earn yield. They consider yield, risk, and liquidity. Maple offers fixed interest rates and consistent yields through over-collateralized short-term loans. Collateral includes Bitcoin, Ethereum, Solana, and other digital assets. Borrowers are large institutions such as exchanges, trading firms, prime brokers, and market makers. They borrow against assets to fund business growth at higher returns than interest rates. Tokenization is expanding rapidly, and Maple is positioned to provide financing against new tokenized assets.
Coco: On the borrower side, what are the collateral ratios?
Martin: A typical Bitcoin loan has a 70% LTV, meaning 130% over-collateralized. If collateral value drops, we use margin calls or liquidate to protect loans. In the past two years, with over 100 margin calls and two liquidations, our risk management processes are battle-tested.
Coco: Maple’s margin call process seems more aligned with CeFi than Defi. Can you explain?
Martin: Yes, we combine TradFi principles with Defi benefits. Margin calls help risk management by allowing borrowers to send more collateral before reaching liquidation levels. This proactive approach ensures higher collateralization during drawdown events, providing better security.
Coco: Why do institutional borrowers prefer this model?
Martin: Institutions appreciate actively managed loan books, offering better risk management. Maple focuses on client needs and combines TradFi principles for secure lending.
Coco: What collateral tokens does Maple accept?
Martin:We accept Bitcoin, Ethereum, Solana, and select others. We reject riskier tokens and focus on high-quality assets like Bitcoin, Ethereum, and Solana.
Coco: How does Syrup attract stablecoin supply?
Martin: SyrupUSDC allows users to deposit stablecoins and earn yield. Deposits generate loans, creating supply-side liquidity. SyrupUSDC tokens accrue interest in real-time and can be traded or used in Defi.
Coco: What blockchain is Maple built on?
Martin: Maple is built on Ethereum and recently launched SyrupUSDC on Solana, expanding accessibility and incentivizing users with $500k in benefits.
Coco: What are Maple's growth strategies?
Martin: Maple focuses on partnerships and institutional catering, with consistent yields and integrations with like Binance, OKx, Pendle, and others. Maple aims to complement platforms like Aave by listing its assets for borrowing.
Coco: What lessons did Maple learn from the last cycle?
Martin: Maple transitioned from under-collateralized to over-collateralized lending, prioritizing transparency and in-house management of loans, avoiding losses.
Coco: Do you think Defi lending will dominate over CeFi?
Martin: Defi will likely evolve into more automated finance, combining CeFi principles with decentralized benefits.
Coco: Why is this cycle’s lending less dynamic than the last?
Martin: Firms are taking fewer risks with better-managed and over-collateralized loans. There is less credit.
Coco: How will US stablecoin regulations impact Maple?
Martin: Stablecoin regulations will drive supply growth, creating demand for yield, benefiting Maple.
Coco: Will non-USD stablecoins matter?
Martin: USD-denominated stablecoins dominate growth, making US regulations crucial to Maple’s business.
Enjoy the podcast!
Coco
I am Coco Kee, author and host of World Ledger with Coco Kee newsletter and podcast, a rebrand from BlockchainAsia, the Co-founder of Kee Global Advisors, and a dog lover with a Goldendoodle Lucy.
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