In Brief:
- Maple Finance launched Defi’s first syndicated loans with Alameda Research.
- Alameda Research is the only borrower of this particular pool.
- Within this pool, only a few accredited non-US institutions are permitted to lend funds.
DeFi platform Maple Finance announced the launch of the first DeFi syndicated loan in collaboration with Alameda Research.
According to the report, the new feature allows the borrowers to syndicate loans directly from accredited institutional investors through a single borrower-lending pool.
Syndicated loans enable a borrower to access funds from a group of lenders at the same time, increasing capital efficiency in debt markets.
Alameda Research is the pool’s sole borrower, and the trading firm will be able to leverage its profile in the future to obtain more competitive pricing.
Within this pool, non-US institutions like CoinShares, Abra, and Ascendex are the only lenders.
Alameda Research has agreed to borrow $25 million from the pool, with plans to increase it to $1 billion within a year.
Maple’s syndicated loans are entirely executed on the Ethereum network, giving both lenders and borrowers greater flexibility and security.
This new pool with Alameda goes a step further by limiting the borrowing side to only one borrower, Alameda. Maple Finance believes this could lead to more competitive pricing and volume.
Alameda Research’s co-CEO Sam Trabucco stated, “The crypto trading landscape has evolved very quickly over the past few years, and we expect it to continue to do so. The flexibility that comes from a decentralized, on-chain lending platform like this one helps Alameda adapt to that landscape, and we look forward to seeing it grow.”
There are two other unnamed institutional investors involved in the DeFi syndicated loan available only to accredited non-US institutions. They have gone through AML and KYC processing.
With such strict lender checks, the DeFi project plans to lure large traditional finance participants to sign up for its funding waitlist as well.
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