Cryptocurrency lending platform Maple Finance has entered into a partnership with Lido Finance, enabling the offer of stablecoin credit lines supported by Lido’s liquid staking token, stETH. This collaboration, announced on Thursday, allows institutions to borrow stablecoins without needing to liquidate their staked ETH holdings. Borrowers can use stETH as collateral for the loans backed by Maple’s internal credit team, as noted in a press release.

Lido’s stETH represents a liquid alternative to staked ETH, which can still earn staking rewards while being utilized in decentralized finance (DeFi).

What to Know:

• Maple is now providing stablecoin loans with the backing of stETH through its alliance with Lido Finance.
• Institutions can borrow without the need to unstake, maintaining their ETH rewards.

Restaking – employing a blockchain for securing additional applications – has emerged as a new investment trend in the cryptocurrency landscape. Lido, a key player in Ethereum staking, has actively sought partnerships to elevate stETH’s prominence in the market.

Maple, holding over $1.8 billion in assets on its platform, is also partnering with Wall Street firm Cantor Fitzgerald to facilitate bitcoin-backed loans.

“This partnership formalizes a growing demand from institutions that are already leveraging stETH in their capital frameworks,” remarked Sid Powell, CEO and Co-Founder of Maple. “By introducing loans secured by stETH, we’re simplifying liquidity access for institutions while ensuring their primary assets remain staked and operational.”

This offering caters to various institutional needs, including extending treasury runway, moderate leverage trading, and short-term working capital.