Crypto exchange Kraken and onchain asset manager Maple have launched a new onchain warehouse financing facility, applying a traditional credit market structure to institutional digital asset lending. The facility aims to expand Kraken's institutional lending business without requiring additional balance-sheet capital.
3 storiesCrypto & Digital AssetsDeFi (decentralised finance) protocolsTokenisation of real-world assets (RWA)Crypto exchanges: Coinbase, Binance, Kraken, OKX, Bybit
Kraken, Maple Launch Onchain Warehouse Facility for Institutional Crypto Loans
IN SHORT
Crypto exchange Kraken and onchain asset manager Maple have launched a new onchain warehouse financing facility, applying a traditional credit market structure to institutional digital asset lending. The facility aims to expand Kraken's institutional lending business without requiring additional balance-sheet capital.
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Frequently asked questions
It's a structure that applies traditional warehouse financing, commonly used for commercial loans, to the onchain crypto market. It involves a special purpose vehicle (SPV) to manage collateral and loans, aiming for bankruptcy remoteness.
It allows Kraken to expand its institutional lending business without using its own balance-sheet capital, by leveraging external financing through the SPV structure.
A bankruptcy-remote SPV aims to protect lenders by removing the borrower's ability to file for bankruptcy, thereby isolating the assets and loans within the facility.
According to RWA.xyz data, the tokenized credit market has grown to more than $6.2 billion in distributed value, with Maple being the largest platform in this sector.
What Happens Next
01Kraken and Maple will continue to service and monitor the loans within the facility.
02The tokenized credit market is expected to continue its expansion into various lending sectors.