Share this article
M11 Credit Resumes Crypto Lending on Maple Finance After FTX-Spurred Pause
The firm introduced an upgraded credit underwriting process and appointed a new head of credit. The developments came after M11 Credit suffered $36 million of loan defaults on lending protocol Maple Finance following FTX’s November collapse.
Updated May 9, 2023, 4:12 a.m. Published Apr 5, 2023, 7:10 p.m.
M11 Credit has reopened lending and is raising fresh capital for its new crypto lending pool on blockchain-based credit marketplace Maple Finance, the firm tweeted Wednesday.
It also appointed a new head of credit and has upgraded its risk management and credit underwriting process, a Maple blog post said.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
M11 Credit is once again open for lending and we're excited to announce that we're raising funds for our KYC USDC pool on @maplefinance. The borrower will be a highly reputable and creditworthy market-neutral trading firm that we've carefully vetted.
— M11 Credit (@M11Credit) April 5, 2023
🧵(1/7)
The new developments came after pools managed by M11 Credit suffered $36 million of defaults, other loans missed payment and it restructure following the collapse of crypto exchange FTX in November. While some crypto watchers saw FTX’s sudden implosion as a black swan event, the subsequent contagion to trading firms and lenders highlighted crypto lending’s deficiencies in risk management and credit underwriting.
Notably, Orthogonal Trading, one of the largest borrowers of M11 pools, allegedly misled M11 and Maple by misrepresenting its financials and losses from FTX. Subsequently, investors in the affected pools faced up to 80% losses on their deposits.
Advertisement
Read more: Maple Finance's $54M of Sour Debt Shows Risks of Crypto Lending Without Collateral
Crypto lending drought
Following the events, M11 Credit expanded its team that oversees crypto lending activities and upgraded its underwriting process and credit policy, including introducing real-time monitoring of assets on blockchain and off-chain, according to Maple.
The new M11 Credit lending pool is a permissioned USD coin (USDC) stablecoin pool, where liquidity providers need to go through know-your-customer (KYC) checks to invest.
The pool’s first borrower is digital asset trading firm Flow Traders, which took out a 3.5 million USDC loan with a 60-day term for 12.5% annualized interest rate, according to Maple’s public loan dashboard.
M11 said it is raising additional funds for the pool to lend to a “highly reputable and creditworthy market-neutral trading firm that we've carefully vetted.”
Representatives of M11 Credit did not immediately return a request for comment.
M11’s renewed activity on crypto credit markets and the recent debt restructuring of trading firm Auros may signal a turning point for crypto lending after the FTX collapse led to lenders recalling loans and reducing lending.
The upcoming volatility on crypto markets and scarcity of lending after the blowup of multiple centralized lenders present an opportunity for M11 Credit, the firm tweeted Wednesday.
Advertisement
“We anticipate that the upcoming Ethereum Shanghai upgrade, persisting regulatory pressure and prevailing macro risks may elevate volatility in the cryptocurrency market, presenting opportunities for market-neutral trading firms and driving demand for trading capital.”
Read more: Ethereum's Shanghai Upgrade Could Bring $2.4B Selling Pressure to Ether: Observers
Plus pour vous
Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
Ce qu'il:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
Plus pour vous
Top Stories
