On August 9, 2023, Maple Finance announced the opening of its Cash Management Solution to U.S. domiciled Accredited Investors and Entities, operating with a Reg D exemption. This development allows these investors to access a conservative yield backed by U.S. Treasury bills on-chain.
Since the pool’s initial launch to non-U.S. customers in April, over $27 million USDC has been deposited into the Cash Management USDC pool, returning an average yield of 4.67% to lenders. The pool targets a net APY of the current 1-month U.S. Treasury bill rate, less fees totaling 0.5% annualized.
The Cash Management Pool is designed to serve as a highly liquid treasury management solution for Web3 treasuries, digital asset funds, and DAOs. It offers direct access to U.S. Treasury Bill rates on-chain, without ETF liquidity or depeg risks, and no inbound or outbound fees. This has led to nearly 60% of lenders increasing their positions, with an average position increase of approximately 360%.
Relm Insurance, a licensed and regulated insurance firm, has praised the daily liquidity of the pool, emphasizing that their “top priority is ensuring capital is safe and accessible to meet potential claims.” Since launching, daily liquidity on U.S. banking days has been maintained, with more than $6 million in withdrawals serviced within one business day.
Key features of the Cash Management USDC Pool include:
1. Confidence with compliance: The pool operates with a Reg D exemption.
2. No in or outbound fees: Fees of 50bps are annualized and paid on interest earned.
3. Immediate interest and next-day withdrawals: No lock-up period, and withdrawals are serviced the next U.S. banking day.
4. Established, transparent infrastructure: Maple’s smart contract infrastructure provides constant, verifiable, on-chain information.
5. Direct access and recourse to Treasury Bills: Treasury bills are backed by the full faith of the U.S. Government.
6. Managed with leading 3rd parties: Room40 Capital, an institutional crypto hedge fund, is the sole borrower from the pool.
Maple’s commitment to providing access to financial products on-chain continues with this expansion, offering diverse yield opportunities to suit the risk, liquidity, and compliance needs of various investors.
The onboarding process for an Accredited Investor is described as a 3-step process that should take approximately 10 minutes for an individual and 15 minutes for an entity.
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