Crypto exchange Kraken, in collaboration with onchain asset manager Maple, has launched a new onchain warehouse financing facility for crypto-backed loans. This effort brings a structure widely used in traditional credit markets into the blockchain sphere, targeting institutional digital asset lending.
Core features of the facility
According to the announcement on Thursday, the facility will support Kraken’s over the counter (OTC) lending operations with funds provided in USDC and a bankruptcy-remote special purpose vehicle (SPV). In this model, Maple delivers the senior funding while Kraken maintains an equity stake in each transaction. The approach aims to help Kraken expand its institutional lending business without increasing its balance sheet exposure.
Mini glossary: A Special Purpose Vehicle (SPV) is a separate legal entity set up for a specific transaction. A bankruptcy-remote model separates relevant assets from the main company’s potential bankruptcy process by law.
Maple highlighted that this arrangement offers institutional lenders overcollateralized, senior risk exposure to Bitcoin and Ether-backed loans. The company also emphasized that collateral movements and the performance of the loans can be transparently tracked onchain. Maple is recognized as a leading platform operating in the tokenized credit sector.
Maple announced that the structure gives institutional lenders senior, overcollateralized exposure secured by Bitcoin and Ether, with both collateral and credit performance monitored onchain.
Kraken-affiliated entities will handle the origination, sale, and operational tracking of the loans. The underlying collateral will be safeguarded by Kraken Financial, a Wyoming-chartered special purpose depository institution. Oversight of the facility will be managed by independent SPV administrator Zaria. The parties did not disclose the facility’s size or specific financial terms.
Growth in the tokenized credit market
According to RWA.xyz data, the tokenized credit market skyrocketed from around $1.87 billion a year ago to over $6.2 billion today. Maple stands out as the largest platform in this space, managing approximately $1.4 billion worth of tokenized credit assets.
| Metric | Value |
|---|---|
| Tokenized credit market | $6.2 billion+ |
| Level one year ago | Around $1.87 billion |
| Maple’s tokenized credit assets | About $1.4 billion |
This announcement comes as the crypto lending sector attempts to reinvent itself following the market crash in 2022. After high-profile failures from lenders like Celsius and BlockFi, firms are again expanding institutional credit channels and building out blockchain-based lending infrastructure.
Parallel developments and weak links in the sector
In May, Ripple secured a $200 million credit line from investment manager Neuberger Berman to scale the lending capacity of its institutional prime brokerage service. The facility will support margin loans and similar products for hedge funds, trading firms, and other institutional clients.
As the crypto lending market reshapes itself post-2022 crash, companies are stepping up institutional debt capacity and blockchain-powered lending solutions.
That same month, analysts at Bernstein projected that if blockchain-based lending grows beyond niche applications, tokenized credit could access a massive $4 trillion addressable market. They believe expansion into areas like mortgages, auto loans, and small business finance is possible.
Despite this optimism, pressure persists in segments of decentralized finance. Earlier this month, Radiant Capital announced it would gradually wind down operations, after it failed to replenish the $50 million in funds lost to an exploit in 2024 and could not attract new capital.
