Maple Finance Has Been Granted Exemption From the SEC in Order to Operate on-chain Treasury Pools

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Last Updated on August 10, 2023 by Bitfinsider

To sell its one-month U.S. Treasury rates to authorised investors in the United States, the institutional capital marketplace on blockchain Maple Finance has obtained permission from the Securities and Exchange Commission of the United States.

The Maple Finance Treasury pools were only accessible to approved investors outside of the United States prior to the announcement on August 9. Through the SEC Regulation D Rule 506(c) Exemption, a company may provide investment products to U.S.-based individual investors without the need for prior registration if their annual income is greater than $200,000 ($300,000 if their spouse is included) or their net worth exceeds $1 million, excluding the value of their primary residence. Such investment products may also be sold by a company to accredited U.S. organisations, such banks.

According to information from Maple Finance, nearly 21 million USD Coin have been deposited into the Treasury pool, which yields an annualised yield of 4.76% right now. There are no outbound or incoming expenses except from a 0.50% annualised management fee deducted from the yield.

Developers said that “onboarding takes 15 minutes and Lenders can download monthly interest statements anytime.” Withdrawals are processed in a maximum of 48 hours, according to the website. Founded in 2022, institutional crypto hedge company Room40 Capital is now the pool’s lone borrower.

In accordance with Room40 Capital, the “proceeds will be used to purchase and hold short-dated U.S. Treasury bills and reverse repurchase agreements fully collateralized by U.S. Treasury bills only.” Since the start of the Treasury pools in April, the company has made 46 payments with no late payments.

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