[DigitalToday reporter Chi-gyu Hwang (황치규)] Kraken and Maple have launched an on-chain warehouse financing facility for institutional loans backed by cryptocurrencies.
Cointelegraph reported on June 25 that the two companies applied a warehouse financing structure widely used in traditional credit markets to digital asset lending for institutions.
The facility is designed to supply funding for Kraken’s OTC lending business. It is centered on a special purpose vehicle and operated with funds denominated in USDC. Maple provides senior capital and Kraken retains a stake in the transaction. Kraken can expand institutional lending through this structure without tying up additional balance-sheet capital.
A Kraken affiliate handles loan origination, sale and servicing and also holds the transaction position. Collateral is held by Kraken Financial, a Wyoming-chartered special purpose depository institution. An independent SPV administrator, Zaria, runs the facility. The two companies did not disclose the facility’s size or detailed financial terms.
Chi-gyu Hwang
delight@d-today.co.kr