Kraken, Maple Launch Onchain Warehouse for OTC Crypto Lending

Kraken launched an onchain warehouse facility in partnership with Maple, the companies said Tuesday. The structure mirrors a traditional asset-backed securities model, giving Kraken's over-the-counter lending desk a revolving credit line funded with USDC and collateralized by Bitcoin and Ether.

A warehouse facility lets the lender draw capital as it originates loans, rather than raising the full sum upfront. Kraken said the onchain version uses Maple's smart contract infrastructure to automate collateral management and settlement, cutting the back-office work typical of bank credit lines.

The facility carries the same exposure as any crypto-backed loan. A sharp drop in Bitcoin or Ether could trigger margin calls and forced liquidations. Smart contract bugs are another vector, and Maple itself had a $30 million default in 2022 after a borrower failed to repay a loan on its platform. Kraken said the new facility is overcollateralized and uses a third-party oracle for price feeds, though it declined to name the oracle provider.

Kraken's OTC desk lends to institutions and high-net-worth clients. The warehouse gives it a cheaper, faster source of capital than traditional banking lines, which can take weeks to arrange. Onchain settlement also removes counterparty risk at the clearing layer, Kraken said.

For Maple, the partnership brings a blue-chip exchange onto its lending network. The platform has been rebuilding since the 2022 default, tightening its underwriting and adding insurance pools. Kraken's facility is the largest single credit line Maple has supported to date.

The facility is live. Kraken declined to say how much capital has been committed or drawn so far.