TL;DR
- Kraken and Maple have closed an onchain warehouse facility for digital asset-backed loans, replicating the structural protections of institutional credit markets in a fully onchain environment for the first time.
- The USDC-denominated facility funds Kraken’s OTC lending program, with Maple providing senior financing through a bankruptcy-remote SPV so clients can access liquidity without selling their crypto.
- For Maple lenders, the facility opens senior, overcollateralized yield backed by BTC and ETH collateral, with loan performance verifiable onchain in real time.
We’re excited to announce the closing of an onchain warehouse facility for digital asset-backed loans with Maple, the leading onchain asset manager. The move marks one of the first times the structural protections that underpin institutional credit markets have been replicated in a fully onchain environment.
How the facility works
The USDC-denominated facility funds our OTC lending program, with Maple providing senior financing through a dedicated SPV designed to be bankruptcy-remote, enabling clients to access funding without the need to sell their crypto holdings.
Our affiliates act as originator, seller, and servicer, while retaining a position in the capital structure to ensure aligned incentives in the transaction.
Kraken Financial, our Wyoming-chartered Special Purpose Depository Institution and regulated qualified custodian, holds the underlying collateral. Zaria, an independent SPV administrator, serves as the administrative agent.
A new credit layer for digital assets
Institutional demand for secured digital asset credit has grown steadily, but to date, that demand has been met largely through bilateral arrangements with limited structural sophistication.
This facility brings warehouse financing, the credit model that underpins traditional markets in auto loans, mortgages, and consumer credit, onchain for the first time.
What the facility unlocks
For us, the facility provides a scalable, capital-efficient credit line to grow our lending book without committing additional balance-sheet capital as we deepen our institutional product suite across the US, Europe, and Asia.
For Maple lenders, it opens access to senior, overcollateralized yield backed by BTC and ETH collateral, a new asset class within Maple’s earn product suite, with collateral balances and loan performance verifiable onchain in real time.
Sidney Powell, CEO and Co-Founder, Maple: “The infrastructure that powers a multi-trillion-dollar ABS market in traditional finance has never existed onchain, until now. This facility applies that model to digital asset collateral in a fully onchain environment, with the structural protections institutions actually require.”
Arjun Sethi, Co-CEO of Kraken: “Our clients want access to the same capital formation tools that have powered traditional credit markets for decades. This facility enables institutions and crypto holders to access liquidity without selling their assets, creating new ways for digital assets to be used within the financial system. By bringing proven credit infrastructure to onchain finance, we can improve capital efficiency, expand access to credit, and unlock greater utility for digital asset holders seeking financing for everyday needs and larger investment opportunities alike.”
Bringing structured credit onchain
Warehouse financing has been foundational to capital markets for decades. This facility demonstrates that its core structural protections (bankruptcy remoteness, senior subordination, independent administration) can be delivered in a fully onchain environment, and establishes a repeatable template for additional originators.
The facility also opens up avenues for digital asset holders to access funding at scale through an institutionally structured facility.