The veteran US exchange has tapped the 2019-founded Maple, one of the largest on-chain institutional asset management platforms with TradFi and crypto experience, to introduce a lending structure commonly used in traditional finance to blockchain-based markets.<\/p>\n
It will be denominated in USDC and will support Kraken\u2019s over-the-counter (OTC) lending business by enabling institutional clients to borrow against their BTC and ETH holdings rather than selling them.<\/p>\n
According to the joint statement from the two companies, the transaction is one of the first to replicate the structural safeguards of asset-backed securities (ABS) markets entirely on-chain. This facility, they added, was built around a dedicated special-purpose vehicle (SPV), which aims to remain bankruptcy-remote. At the same time, Kraken affiliates originate, service, and retain the junior portion of the loans.<\/p>\n
The statement explained<\/a> that this first-loss position means the exchange absorbs potential losses before senior lenders are affected. This should align incentives between borrowers, lenders, and the platform.<\/p>\n Warehouse financing has served as a cornerstone of traditional credit markets for a long time, helping fund products such as mortgages, auto loans, and consumer lending before they are packaged into larger investment vehicles.<\/p>\n Under the newly-launched structure from Maple and Kraken, the BTC and ETH collateral will be held by a Wyoming-chartered Special Purpose Depository Institution (SPDI), which is also a regulated qualified custodian.\u00a0Independent SPV administrator Zaria will oversee the facility\u2019s administration.<\/p>\n \u201cThe infrastructure that powers a multi-trillion-dollar ABS market in traditional finance has never existed on-chain, until now. This Facility applies that model to digital asset collateral in a fully on-chain environment, with the structural protections institutions actually require,\u201d commented Sidney Powell, CEO and Co-Founder, Maple.<\/p>\n Arjun Sethi, Kraken\u2019s Co-CEO, noted that this facility comes as a growing number of the company\u2019s clients have requested access to the same capital formation tools that have powered traditional credit markets for decades.<\/p>\n The move with Maple follows other significant endeavors made by the veteran exchange, including partnering<\/a> with Nasdaq to develop tokenized equities and further bridge traditional capital markets with blockchain-based financial systems.<\/p>\n The collaboration will see the Kraken\u2019s tokenized equity product, xStockz, power a permissionless infrastructure later designed to support Nasdaq\u2019s issuer-sponsored equity tokens.<\/p>\n Separately, Deutsche B\u00f6rse acquired<\/a> a $200 million stake in Kraken in mid-February, which puts the exchange\u2019s parent company\u2019s valuation at $13.3 billion.<\/p>\n The post Kraken and Maple Bring Institutional Credit Infrastructure Fully On-chain<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The veteran US exchange has tapped the 2019-founded Maple, one of the largest on-chain institutional asset management platforms with TradFi and crypto experience, to introduce a lending structure commonly used in traditional finance to blockchain-based markets. It will be denominated in USDC and will support Kraken\u2019s over-the-counter (OTC) lending business by enabling institutional clients to […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-186992","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/186992"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=186992"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/186992\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=186992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=186992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=186992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Kraken, Deutsche, Nasdaq<\/h2>\n