Bitwise partners with Maple Finance to enter on-chain credit markets

Bitwise Asset Management has made its first institutional DeFi allocation through Maple Finance, marking a move into on-chain credit markets. 

The partnership aims to provide institutional investors with yield-generating, transparent, and structured lending opportunities.

This allocation highlights a shift in institutional capital beyond traditional fixed-income products. Maple Finance, which specializes in on-chain credit, offers a compliant infrastructure for digital asset-backed lending, according to a note shared with crypto.news.

By integrating Maple’s on-chain lending solutions, Bitwise aims to diversify its crypto-native investment strategies while maintaining institutional risk and regulatory standards.

Traditional financial institutions entering DeFi

Bitwise’s investment follows broader institutional interest in DeFi credit markets. Firms looking for alternative yield sources are increasingly turning to on-chain lending, which enables real-time risk assessment and instant settlement.

Maple, which currently manages over $620 million in total value locked, has refined its lending model to prioritize overcollateralized loans, moving away from undercollateralized lending due to market risks.

Beyond its core lending platform, Maple has introduced structured financial products tailored to institutional investors. In January, it launched a “Lend + Long” product that combines high-yield lending with Bitcoin options strategies. 

The protocol also launched Maple Direct in 2023, a direct lending arm catering to institutional borrowers.

Bitwise, which manages $12 billion in client assets, has been expanding its product lineup to offer diverse crypto investment solutions.

The firm has recently filed for multiple crypto-based ETFs and raised $70 million in a funding round backed by prominent investors.

Its allocation to on-chain credit through Maple signals a broader trend of institutional adoption of DeFi lending markets as an alternative to traditional fixed-income investments.