Kraken, Maple launch onchain warehouse facility for crypto-backed institutional loans

Crypto exchange Kraken and onchain asset manager Maple have launched an onchain warehouse financing facility for crypto-backed loans, applying a lending structure widely used in traditional credit markets to institutional digital asset lending. 

According to Thursday’s announcement, the facility will fund Kraken’s OTC lending business using a bankruptcy-remote special purpose vehicle (SPV) and USDC-denominated financing.

Unlike traditional bilateral crypto loans, the facility is structured through the SPV, with Maple providing senior financing and Kraken retaining a stake in the transaction. The arrangement is intended to let Kraken expand its institutional lending business without tying up additional balance-sheet capital.

Tokenized credit has grown to more than $6.2 billion in distributed value from roughly $1.87 billion a year ago, according to RWA.xyz data. Maple is the sector’s largest platform, with approximately $1.4 billion in tokenized credit assets.

Maple said the structure gives institutional lenders access to senior, overcollateralized exposure backed by Bitcoin and Ether while allowing collateral and loan performance to be tracked onchain.

Commonly used in large commercial transactions, in particular commercial mortgage-backed securities (CMBS), a bankruptcy-remote SPV removes the borrower’s ability to file for bankruptcy.

Kraken affiliates will originate, sell and service the loans while retaining a position in the transaction. Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution, will hold the underlying collateral, while independent SPV administrator Zaria will oversee administration of the facility. The companies did not disclose the facility’s size or financial terms.

Related: FalconX expands tokenized credit facility to Monad network in lending push

Tokenized credit market continues to expand

The announcement comes as crypto lending continues to rebuild following the 2022 market collapse, with firms expanding institutional lending and blockchain-based credit infrastructure after the failures of lenders such as Celsius and BlockFi.

In May, Ripple secured a $200 million credit facility from investment manager Neuberger Berman to expand the lending capacity of its institutional prime brokerage business. The financing is intended to support margin lending and other credit products for hedge funds, trading firms and other institutional clients.

The same month, analysts at Bernstein said tokenized credit could represent a $4 trillion addressable market as blockchain-based lending expands beyond niche use cases into sectors including mortgages, auto loans and small-business lending.

Source: RWA.xyz

While onchain lending has continued to evolve, some parts of the decentralized finance sector have struggled. Earlier this month, lending protocol Radiant Capital said it would wind down after failing to recover from a $50 million exploit in 2024, citing an inability to replace lost funds or secure new capital.

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