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Crypto lender Maple Finance extends its support to Solana

Crypto capital markets platform Maple Finance has expanded support for the Solana blockchain, providing a $45 million fund to fuel the ecosystem’s growth.

Maple offers undercollateralized lending to institutional borrowers on Ethereum (ETH) and now Solana (SOL) from multiple pool delegates. The project stated in an April 25 blog post that it has already “issued over $1.2 billion in loans and is currently bringing over $900 million in TVL to the platform.”

The ecosystem fund was launched in partnership with decentralized finance (DeFi) lending platform X-Margin, with capital provided by USD Coin (USDC) issuer Circle, digital asset manager CoinShares and several unnamed Solana-based projects.

Maple’s goal for its Solana arm (Maple Solana) is to “leverage Maple’s on-chain capital markets infrastructure to scale the Solana ecosystem” and meet funding needs across the network.

Maple expects the move to immediately result in strong activity on Solana, with Maple Solana Lead Quinn Barry outlining the following:

“We anticipate injecting over $300 million in liquidity to Solana over the next three months. We will soon welcome another credit expert to the platform and share more details on how liquidity protocols are already using Maple’s infrastructure as a launch pad for Solana.”

Barry also provided another update the next day tweeted that Maple intends to have an approved pool in place by the end of 2022 and allow protocols, decentralized autonomous organizations (DAOs) and real-world entities to borrow funds.

Maple Solana will also issue the SYRUP governance token in 2022, which will be equivalent to Maple’s MPL governance token on Ethereum.

X-Margin acts as the first pool delegate on Maple Solana. The pool currently has cash totaling $34 million, but there are no active loans and deposits are not yet earning interest. By the end of 2022, X-Margin expects the pool to control $300 million.

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The X-Margin loan pool in Maple’s Solana app.

Institutions may find Maple’s platform attractive as it conforms to required Know-Your-Customer/Anti-Money Laundering (KYC-AML) standards like few DeFi lending protocols.

Platforms like Celsius (CEL) require users to submit KYC information and have been a pool delegate of Maple’s Ethereum app since February. Lending protocol AAVE (AAVE) launched its approved Aave Arc pool in January, requiring users to submit KYC information.

Related: The many layers of crypto staking in the DeFi ecosystem