Kraken, Maple Finance to build on-chain system for BTC, ETH collateralized loans

Crypto exchange Kraken is partnering with Maple Finance (MPL) to build an on-chain financing system for collateralized loans, The Block reported. The system will fund Kraken's over-the-counter (OTC) lending program, which allows institutional and high-net-worth clients to borrow USDC by collateralizing cryptocurrencies like BTC and ETH. Under the arrangement, Maple will provide senior capital through a bankruptcy-remote special purpose vehicle (SPV). Kraken will manage loan origination, sales, and servicing, and will also provide junior capital, absorbing initial losses before Maple. This structure reduces Kraken's own capital burden while giving Maple investors access to a senior, overcollateralized lending product backed by BTC and ETH. Collateral balances and loan performance are expected to be verifiable on-chain in real-time.