Maple Solana plans to increase its pool of funds to $300 million by the end of 2022 and offer up to $1 billion in unsecured loans.
Maple Finance, a decentralized corporate debt marketplace for institutional borrowers, has expanded its access to Solana as it seeks to enable the financing of projects built on the smart contract blockchain. The marketplace, also available on Ethereum, is the first multi-chain equity platform. It is also the pioneering institutional-focused unsecured loan for projects in the Solana ecosystem.
Scaling the Solana ecosystem
According to Maple Solana, the project starts with a $45 million pool of unsecured loans. The team will look to increase this over the next eight months to reach $300 million by the end of the year. Quinn Barry, head of Maple Solana, said their goal is to help scale the Solana ecosystem through on-chain capital markets infrastructure. “Over the next three months, we expect to bring more than $300 million of liquidity to Solana. We will soon welcome another credit specialist to the platform and share more details on how liquidity protocols are already using Maple’s infrastructure as a launch pad for Solana,” she added. Sid Powell, CEO and co-founder of Maple Finance, commented: “Building the first multi-chain capital markets solution has attracted and will continue to attract high-quality lenders and borrowers, creating unprecedented growth opportunities for Solana-based innovators and enabling the entire industry to thrive.” Maple Solana is aiming to issue $1 billion in loans, the cryptocapital network that also provides the service on Ethereum said in an announcement. There are also plans to launch SYRUP, a governance token that will offer the same functionality as the Ethereum-based MPL token.
X-Margin is the first representative of the pool
As part of the milestone for transforming capital markets through technology in the Solana ecosystem, Maple Solana secured the data-driven lender corporation X-Margin. The company will be the first representative of the pool, with its lending business attracting huge deposits from three major partners. Financial services and payments technology provider Circle deposited $10 million, while digital asset manager Coinshares added $20 million. X-Margin has also received $10 million from Solana natives and is open to deposits of up to $5 million in USDC to make the $45 million initial pool.
Blue chip crypto loan
The X-Margin team will leverage its privacy-preserving credit infrastructure and underwriting expertise alongside Maple’s on-chain credit facility to provide credit to some of the largest borrowers in the crypto space. Darshan Vaidya, CEO of X-Margin said, “Maple’s multi-chain infrastructure continues to lead the way for institutional credit infrastructure in cryptocurrencies. X-Margin’s privacy-preserving credit platform is a natural fit for this, helping to scale a more transparent, data-driven credit market in DeFi and CeFi.” Borrowers will have to adhere to Know Your Customer (KYC) and Anti Money Laundering (AML). This is part of regulatory compliance and to ensure that loans are advanced for reputable projects.