TermMax Launches Fixed-Rate Borrowing for Tokenized Stocks on BNB Chain

The launch by TermMax, a leading fixed-rate protocol, comes in direct response to what CEO Jerry Li described as “unprecedented market volatility” over recent months. This turbulence has highlighted a critical gap in DeFi: the lack of predictable borrowing costs. While variable-rate protocols expose users to unpredictable interest rate swings, TermMax’s fixed-rate solution provides the certainty required by institutional capital to deploy funds at scale. “Recent market turbulence has validated what we’ve long believed: institutions need rate certainty to deploy capital at scale in DeFi,” Li stated in the announcement.

TermMax’s protocol architecture is specifically designed to meet institutional requirements. Its core mechanism is a zero-coupon bond model that delivers predetermined yields for lenders and transparent, fixed costs for borrowers, thereby eliminating the interest rate risk that has historically deterred large-scale capital from entering DeFi. This model is particularly relevant for the growing Digital Asset Treasury (DAT) sector, where corporate treasuries and asset managers allocating to digital assets increasingly demand sophisticated, predictable fixed-income products.

TermMax is executing its roadmap by expanding into real-world asset (RWA) markets, specifically through the integration of tokenized securities from Ondo Global Markets as eligible collateral. Ondo Global Markets has rapidly become the largest tokenized securities platform, boasting over $350 million in Total Value Locked (TVL) and offering access to more than 100 tokenized U.S. stocks and ETFs. This partnership is a landmark development, enabling holders of these tokenized equities to access fixed-rate liquidity against their positions—a capability previously unavailable in the DeFi space.

“The convergence of RWAs and fixed-rate DeFi represents the next evolution of on-chain finance,” added Jerry Li. By being the first to offer fixed-rate borrowing against Ondo Global Markets collateral, TermMax positions itself at the intersection of two of digital assets’ fastest-growing sectors: tokenized traditional securities and institutional-grade DeFi infrastructure. This move creates new capital efficiency opportunities, allowing both crypto-native users and traditional finance participants to leverage their tokenized stock holdings without selling them.

TermMax’s solution is designed to mirror the flexibility of traditional finance (TradFi). Users can roll over loans for long-term borrowing or repay early at any time with minimal break-funding costs, replicating the stock-borrowing experience familiar to institutional players. Furthermore, the protocol’s physical delivery capabilities open the door to supporting sophisticated options markets for stock token holders.

This functionality allows users to implement strategies like covered calls to earn additional yield on their positions while also gaining access to call and put options. TermMax notes that this innovation for financial engineering in stock token options markets has already been realized on BNB Chain for specific token markets. Underpinning these features are risk management protocols aligned with institutional standards, including over-collateralization requirements and transparent, on-chain tracking of all loan positions, providing the auditability and security that professional capital demands.