TL;DR
- Kraken and maple having closed a chain warehouse For loans backed by digital assetsreplicating the structural protections of institutional credit markets in a fully on-chain environment for the first time.
- THE USDC denominated facility funds Kraken OTC Lending Programwith Maple providing senior financing through a Bankruptcy Remote SPV so customers can access liquidity without selling their crypto.
- For Maple lendersthe establishment opens oversized senior yield supported by BTC and ETH collateralwith verifiable on-chain lending performance in real time.
We are excited to announce the closure of an on-chain warehouse for digital asset-backed loans with Maple, the leading on-chain asset manager. The move marks one of the first times the structural protections that support institutional credit markets have been replicated in a fully on-chain environment.
How the installation works
The USDC-denominated facility funds our OTC lending program, with Maple providing senior funding via a dedicated SPV designed to be bankruptcy remote, allowing clients to access funding without the need to sell their crypto holdings.
Our affiliates act as originators, sellers and managers, while maintaining a position in the capital structure to ensure aligned incentives in the transaction.
Kraken Financial, our Wyoming-licensed special purpose depository institution and regulated qualified custodian, holds the underlying collateral. Zaria, an independent administrator of the SPV, serves as administrative agent.
A new layer of credit for digital assets
Institutional credit demand for secure digital assets has grown steadily, but until now this demand has been met largely through bilateral agreements with limited structural sophistication.
This facility brings online for the first time warehouse financing, the credit model that underpins the traditional auto loan, mortgage and consumer credit markets.
What installation unlocks
For us, the facility provides a scalable, capital-efficient line of credit to grow our loan portfolio without committing additional capital to the balance sheet, as we deepen our institutional product offering in the United States, Europe and Asia.
For Maple lenders, this opens access to oversized senior yield backed by BTC and ETH collateral, a new asset class within Maple’s product suite, with real-time on-chain verifiable collateral balances and loan performance.
Sidney Powell, CEO and Co-Founder, Maple: “Until now, the infrastructure that powers a multi-trillion dollar ABS market in traditional finance has never existed on-chain. This facility applies that model to digital asset collateralization in a fully on-chain environment, with the structural protections that institutions actually need.”
Arjun Sethi, co-CEO of Kraken: “Our customers want access to the same capital formation tools that have powered traditional credit markets for decades. This facility allows institutions and crypto holders to access liquidity without selling their assets, creating new ways to use digital assets within the financial system. By bringing proven credit infrastructure to on-chain finance, we can improve capital efficiency, expand access to credit, and unlock greater utility for digital asset holders seeking financing for their daily needs and larger investment opportunities.
Put structured credit online
Warehouse financing has played a fundamental role in capital markets for decades. This facility demonstrates that its basic structural protections (bankruptcy remoteness, higher subordination, independent administration) can be provided in a fully on-chain environment and establishes a replicable model for other originators.
The facility also opens up the opportunity for digital asset holders to access large-scale funding through an institutionally structured facility.
