Crypto asset manager and ETF provider Bitwise has made its first allocation into decentralized finance (DeFi) through a partnership with on-chain credit specialist Maple Finance, the companies announced on Thursday.

The size of Bitwise’s allocation was not disclosed, but it utilizes a Maple bitcoin-backed lending product. This initiative marks a significant step toward the broader adoption of on-chain credit by institutional investors, according to Maple CEO Sid Powell. Maple’s BTC backed lending product is offered to accredited investors in the U.S.

As traditional financial firms begin to view digital versions of real-world assets as standard, they are exploring opportunities beyond traditional investments like tokenized Treasury Bills, especially as DeFi yields resurge.

Sid Powell noted, “Bitwise is a strong advocate for the transition to on-chain asset management, where transparency and unique opportunities abound compared to conventional finance.”

In his remarks, Powell highlighted that this yield opportunity from bitcoin lending is unlike anything in conventional finance. He explained that Maple organizes the product in a way that is approachable for institutional asset managers.

Getting to this point required significant groundwork, Powell added. “It took about a year of discussions and preparation between our teams to finalize this collaboration. Bitwise is known for its thoroughness, involving various teams including operations, legal and compliance, risk management, as well as tax advisors, throughout the process.”

With notable crypto ETFs, Bitwise currently manages over $12 billion in client assets across different strategies and accounts.