In-depth Analysis of Maple Finance: On-chain Asset Management in the Era of Institutional Capital

This report is authored by Tiger Research, analyzing the positioning of Maple Finance as an on-chain asset management platform and its strategic opportunities in the evolving encryption institutional market.

Summary of Key Points

• As institutional investors increasingly enter the cryptocurrency market, the demand for asset management solutions that meet traditional financial standards is rising. Maple Finance has emerged to fill this gap, establishing its position as an on-chain asset management platform.
• What Maple does is not just connect lenders and borrowers. It conducts structured assessments of borrowers and strategically manages collateral, making it operate more like a traditional asset management company. Recently, Maple has also expanded its product line by launching a Bitcoin yield product that transforms Bitcoin from a passive holding asset into an income-generating asset.
• As more institutions enter the encryption space, well-prepared asset management platforms like Maple Finance are expected to establish early institutional relationships—this advantage could translate into long-term market leadership.

1. The demand for asset management in the encryption market

In the traditional finance sector, investors holding a large amount of assets usually rely on brokerage firms to provide professional asset management services – a strategy that is widely adopted. But consider another scenario: suppose you are Michael Saylor, the CEO of Strategy, and you have acquired a substantial Bitcoin position. How do you effectively manage these assets?

Initially, options such as staking or direct lending seem feasible. However, in practice, managing large-scale encryption assets is complex and prone to errors. It often requires professionals and robust operational controls. People may consider professional asset management, similar to traditional finance. However, there is another challenge here: structured and reliable asset management institutions are very scarce in the encryption market.

This gap presents a clear opportunity for encryption asset management. Applying proven models from traditional finance to digital assets may unlock significant market potential. As institutional participation in the encryption space deepens, the demand for professional, structured asset management is becoming critical.

Source: bitcointreasuries, Tiger Research

With the accelerated involvement of institutions in the encryption field, this demand is becoming increasingly significant. A key example is Strategy's large-scale Bitcoin purchases that began in 2020. This momentum was further enhanced after the approval of spot Bitcoin ETFs in the United States and Hong Kong in 2024.

Therefore, a market that was once dominated by retail investors is approaching its limits. The current environment requires professional asset management solutions tailored to institutional demands.

Maple Finance was created to meet this demand. Founded in 2019, Maple combines traditional financial expertise with blockchain infrastructure and has steadily established itself as a leading on-chain asset management provider.

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2. On-chain Asset Management: Maple Finance

Maple Finance has a simple and clear structure. It facilitates credit-based on-chain lending by connecting liquidity providers (LP) with institutional borrowers.

This raises a key question: In traditional finance, asset management typically involves diversifying clients' asset portfolios into stocks, bonds, real estate, and other instruments to manage risk and achieve long-term value growth.

In this context, can a platform that specializes in lending intermediation be considered a genuine asset management company?

Source: Maple Finance

After examining the actual operation of Maple Finance, the answer becomes clearer. The platform employs professional asset management practices that go beyond simple loan matching. It conducts thorough credit assessments of institutional borrowers and makes strategic decisions regarding fund allocation and loan terms.

Throughout the loan process, Maple also engages in active fund management, employing mechanisms such as collateral pledging and re-lending. This operational model clearly transcends basic lending intermediaries and is closer to the functions of modern asset management companies.

3. Core Participants and Operating Mechanism of Maple Finance

Maple Finance can operate as an on-chain asset management institution (rather than just a lending intermediary) due to its clear participant structure and systematic operational framework. Maple's products are built around three key participant roles:

Maple Finance, as an on-chain asset management institution (rather than a simple lending intermediary), derives its role from its clear participant structure and systematic operational framework. Its product model is built around three core participant roles:

Source: Tiger Research

This structure reflects the existing保障机制 in traditional finance. In the corporate loan business of banks, depositors provide funds, companies apply for loans, and the internal credit team assesses their financial health. Shareholders participate in governance decisions that influence the direction of the institution.

The operation of Maple Finance is similar. When a borrower applies for a loan, Maple's credit team sets the terms based on the collateral ratio and asset quality. Lenders provide funds, functioning similarly to depositors, while $SYRUP holders take on a governance role similar to that of shareholders, participating in decision-making at the protocol level.

A key difference is that $SYRUP holders will also receive staking rewards funded by protocol revenue. It is worth noting that 20% of the revenue is allocated for buybacks to support these rewards.

Source: Tiger Research

Consider a specific example. The main market maker TIGER 77 needs $10 million in operating funds to expand trading positions during increased market volatility. However, traditional banks denied the request on the grounds of limited trust in the encryption field—resulting in TIGER 77 being unable to obtain the necessary funds.

Maple Finance's internal lending and consulting division, Maple Direct, bridges this gap through its High-Yield Corporate Product. Qualified investors recognized for Maple Direct's performance deposit 10 million USDC into the lending pool.

When TIGER 77 applies for a loan, Maple Direct conducts a comprehensive credit assessment, reviewing the company's financial condition, operational history, and risk profile. After the assessment, it approves a loan of 10 million USDC, with Ethereum as collateral, at an interest rate of 12.5%.

After the loan is executed, the income distribution begins. TIGER 77 pays monthly interest, of which Maple Direct retains 12% as a management fee. The remaining interest is distributed to qualified investors.

Here, Maple's differentiation becomes clear. It goes beyond just being a basic loan intermediary by actively managing collateral—enhancing capital efficiency through secondary lending and collateral staking. In certain cases, Maple also constructs loans based on the corporate guarantees of the parent company rather than traditional collateral.

In fact, the services provided by Maple can compete with traditional financial institutions. It actively manages funds, rather than merely connecting lenders and borrowers. This approach reinforces Maple's positioning as a trusted institutional-grade asset management company, rather than just another DeFi lending platform.

4. Core Products of Maple Finance

4.1. Maple Institutional

Maple Finance has established its position as a legitimate on-chain asset management institution by offering a diversified and structured product portfolio. Its products are mainly divided into two categories: lending products and asset management products, each designed to match the risk tolerance and return objectives of different investors.

Source: Tiger Research

Category One - Lending Products - includes Maple's Blue Chip and High Yield products. The Blue Chip product line is designed for conservative investors who prioritize capital preservation. It only accepts mature assets such as Bitcoin and Ethereum as collateral, and adheres to strict risk management practices.

In contrast, high-yield products target investors seeking higher returns and willing to take on greater risks. Their core strategy involves actively managing over-collateralized assets—through staking or secondary lending—to generate additional returns, rather than simply holding collateral.

Source: Maple Finance

Maple Finance's second product category—asset management—began with its BTC Yield product. This product was launched earlier this year in response to the growing demand from institutions for Bitcoin. Its value proposition is simple: institutions do not need to passively hold Bitcoin, but can deposit BTC to earn interest, generating revenue from existing assets.

This naturally raises a question: If institutions can directly purchase and hold Bitcoin, why not manage it themselves? The answer lies in practical limitations—primarily the lack of secure technology infrastructure or operational expertise to generate returns.

Maple Finance's Bitcoin yield product utilizes dual staking provided by Core DAO. In this model, institutions securely store their Bitcoin with institutional-grade custodians such as BitGo or Copper, earning staking rewards by committing not to utilize their assets for a predetermined period. In short, institutions securely lock their assets and earn returns.

However, the actual operation process is more complex than it seems. Behind the simple facade of "earning returns on Bitcoin" lies a series of technical and operational steps - signing contracts with custodians, participating in Core DAO staking, and converting $CORE staking rewards into cash. Each step requires expertise, which most institutions do not possess internally.

This reflects a familiar pattern in traditional finance. While companies can manage assets directly, they often rely on specialized asset management firms to carry out this work efficiently and securely. In the encryption field, the demand for such expertise is even greater—considering the additional layers of technological complexity, regulatory oversight, security, and risk management.

Starting with Bitcoin yield products, Maple Finance plans to expand into a broader range of asset management products. This strategy is crucial for bridging the gap between institutional investors and the encryption market, addressing a long-unmet demand.

By providing comprehensive, professionally managed services, Maple enables institutions to pursue stable returns from digital assets—without deviating from their core business focus.

4.2 syrupUSDC

Source: Maple Finance

The products discussed so far are primarily aimed at qualified investors, restricting access for general retail participants. To address this issue, Maple Finance has launched syrupUSDC and syrupUSDT—liquidity pools built on top of Maple's existing lending infrastructure and borrower network, targeting retail investors.

The funds raised through syrupUSDC will be lent to institutional borrowers from the Maple blue-chip and high-yield pools, who undergo the same credit evaluation process as other Maple products. The interest generated from these loans is directly distributed to syrupUSDC depositors.

Although the structure is similar to Maple's institutional products, the syrup pool is independently managed. This design reduces the entry barrier for retail users while maintaining the operational rigor of institutional products, thereby improving accessibility without compromising structural stability.

Source: Dune

Although the yield is slightly lower than the level offered to institutional participants, Maple has introduced the "Drips" reward system to enhance long-term participation. Drips provide additional token rewards that are compounded every four hours in the form of points. At the end of each season, points can be converted into SYRUP tokens. Through this incentive mechanism and proactive fundraising strategy, Maple Finance has attracted approximately $1.9 billion in USDC and USDT.

In summary, syrupUSDC/USDT extends institutional-grade products to retail investors, combining accessibility with a structured reward mechanism. By integrating Drips, Maple demonstrates a deep understanding of the dynamics of Web3 participation, providing a model that encourages ongoing engagement while maintaining financial discipline.

5. Key Differentiating Advantages of Maple Finance

The core differentiating advantage of Maple Finance lies in the implementation of its fully on-chain institutional-grade system. Maple does not simply rely on algorithmic lending protocols, but combines on-chain infrastructure with human expertise to create an environment that meets institutional standards.

5.1. Services developed by traditional finance experts

This distinction begins with the composition of the Maple team. Many on-chain financial platforms lack professionals with a traditional finance background. While such experience is not absolutely necessary, it is difficult to provide truly institutional-level services without a deep understanding of institutional investor needs and risk expectations.

This is exactly what sets Maple apart. Its team includes professionals with decades of experience in traditional finance and credit assessment. Their expertise allows for rigorous credit evaluations and robust risk management, forming the trust foundation required by institutional clients.

Source: Tiger Research

The background of the Maple leadership team helps to explain why it has gained the trust of institutional investors.

CEO Sidney Powell brings asset management experience from the National Australia Bank and Angle Finance. Co-founder Joe Flanagan was a consultant at PwC, focusing on corporate financial analysis, and later served as the Chief Financial Officer (CFO) of Axsesstoday.

Technically, Chief Technology Officer Matt Collum was a senior engineer at Wave HQ and is the founder of the fintech startup Every. Chief Operating Officer Ryan O'Shea was responsible for strategy at Kraken, gaining direct experience in the encryption field.

A broader team includes professionals with both financial and technical backgrounds. Capital Markets Director Sid Sheth was responsible for institutional sales at Deutsche Bank. Product Head Steven Liu has held product management positions at Amazon and led fintech projects at Anchorage Digital.

The core advantage of Maple lies in the integration of traditional finance and blockchain expertise. The team's dual-domain knowledge enables them to meet institutional expectations while providing on-chain solutions with operational credibility and technical precision.

5.2. Differentiated Risk Management System

Maple Finance's risk management approach reflects the expertise of its professional team and distinguishes it from most DeFi protocols. While most protocols heavily rely on automated, decentralized mechanisms, Maple directly applies proven methodologies from traditional finance to on-chain.

The first key component is the loan assessment process. In most DeFi protocols, once collateral is deposited, the loan is automatically issued with little to no credit assessment.

In contrast, Maple Finance has implemented a more prudent underwriting model. As previously mentioned, borrower screening is conducted by its investment advisory arm, Maple Direct. This credit-first approach, combined with a preference for over-collateralized structures, allows Maple to manage risk from the outset.

In the case of needing to liquidate, most protocols trigger an immediate asset sale once the collateral falls below a threshold. Maple takes a different approach – issuing a 24-hour notice, allowing borrowers time to replenish their collateral. This is similar to traditional banking practices, where a margin call precedes liquidation. If the borrower does not respond within the window period, liquidation is carried out.

Even the liquidation process itself is designed to minimize market impact. While common DeFi protocols conduct liquidations publicly on exchanges—risking slippage and price disruption—Maple executes liquidations through pre-arranged over-the-counter (OTC) deals with market makers, ensuring controlled execution and reducing volatility.

Maple's withdrawal system is also very prominent. In traditional DeFi, users can instantly withdraw funds if there is available liquidity - but when liquidity is insufficient, uncertainty arises. Maple processes withdrawals in sequence or in timed batches, allowing users to have a clear expectation of fund availability. This structured approach enables investors to plan effectively, adding certainty and confidence to Maple's risk management framework.

5.3. Integrated Ecosystem Structure

Source: Tiger Research

Maple Finance has adopted a robust growth strategy—prioritizing internal risk management and strategic synergy over rapid expansion. Before engaging in external partnerships, the team has established a comprehensive risk framework. Maple does not blindly pursue scale but focuses on collaborating with core partners that can generate meaningful value creation.

This strategy is clearly reflected in the expansion of the syrupUSDC ecosystem. To expand its influence in the DeFi space, Maple has partnered with leading platforms like Spark and Pendle to achieve a diversified yield structure and multiple access points for users.

The collaboration with Spark has yielded concrete results: Spark allocated $300 million to syrupUSDC, using it as collateral to support USDS. This is not a symbolic partnership—it has led to real capital deployment.

The integration with Pendle further enhances flexibility. syrupUSDC holders can now customize their yield exposure using Pendle's Principal Token (PT) and Yield Token (YT) mechanism. This model—leveraging each partner's expertise—has become a consistent strategy within the Maple product line.

The BTC yield product embodies the same approach. Its goal is to transform Bitcoin from a passive holding asset into a yield-generating asset. Achieving this goal requires two core components: secure custody and effective deployment. Maple addresses both of these issues by providing institutional-grade custody in partnership with BitGo and Copper, while generating yields through the dual staking model of Core DAO. Ultimately, this has formed an integrated system where custody and yield coexist without compromise.

6. Maple Finance in 2025 and Beyond

In December 2024, Maple Finance released its strategic roadmap in a founder's letter, outlining its priorities for 2025. About six months later, many of these goals have been achieved:

Maple's total locked value (TVL) exceeds 4 billion dollars;

The first traditional finance (TradFi) partner has borrowed over $100 million through Maple Institutional.

Syrup.fi's first DeFi integration exceeding $100 million;

Protocol revenue surpasses 25 million dollars.

Maple's long-term vision is ambitious. By 2030, the platform aims to achieve an annual loan volume management of $100 billion—nearly 45 times the current $22 billion portfolio size. Achieving this scale requires more than just expanding the existing loan business. Maple must broaden its asset management product suite, deepen partnerships with traditional financial institutions, and attract institutional investors globally.

The first strategic focus is to expand the adoption of BTC yield products. Institutional interest in Bitcoin has surged, and the demand for solutions that go beyond simple custody and can generate returns has also increased. Capturing a significant share of this market is crucial.

The second strategy involves expanding Maple's range of asset products. Currently focused primarily on Bitcoin, Maple plans to extend its yield-generating products to various digital assets. Recently, institutional investors have begun incorporating Ethereum into their portfolios, and this trend of diversifying holdings in digital assets is expected to accelerate. If Maple can provide effective asset management services that generate additional returns from these assets, significant growth opportunities will arise.

7. Maple Finance: Moving Towards a More Prominent Position

The cryptocurrency market has always been driven by retail investors. As of now, the total market capitalization is approximately $3.29 trillion (CoinMarketCap) — which is still relatively small compared to the $51 trillion in U.S. Treasury securities and $18-27 trillion in gold. These comparisons highlight the growth potential that cryptocurrencies could have if they were to fully integrate into traditional asset classes.

Institutional investors will play a core role in driving this growth. Unlike retail participants, the asset scale managed by institutions reaches billions or hundreds of billions of dollars, which means that even a small allocation can significantly expand the encryption market. However, the entry of institutions comes with higher expectations - including regulatory compliance, complex risk management, and secure custody solutions.

Maple Finance's positioning is to serve this institutional niche market. Maple does not provide basic lending tools, but rather has built a comprehensive suite of financial services aimed at meeting institutional standards. Its strategy now includes expanding partnerships and contractual relationships with traditional financial institutions to further enhance credibility.

A recent milestone highlighted its positioning: Maple announced the completion of an initial Bitcoin-backed financing arrangement with Cantor Fitzgerald. Cantor's Bitcoin financing division plans to provide up to $2 billion in initial financing, with Maple being selected as the first borrower. This underscores Maple's institutional credibility and leadership in the encryption credit market.

Winning high-profile clients—such as Strategy, which has adopted Bitcoin as a treasury asset—will further accelerate Maple's adoption of its BTC yield products. Timing is especially critical: institutional clients are sticky. Unlike retail clients, once an institution establishes a partnership, they rarely switch service providers and are more inclined to build long-term partnerships for risk and operational continuity.

Maple is not the only company pursuing this market, but its proven track record with institutions gives it a strong advantage. Ultimately, the next two to three years will be a critical period for determining which platforms can become category leaders in the institutional encryption finance space.

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