Kraken has completed an on-chain warehouse facility transaction with Maple Finance, combining digital asset lending with financing structures commonly used in traditional financial markets.
The transaction brings together the digital asset trading platform and an on-chain asset manager as firms continue to develop lending products that integrate blockchain technology with established financial practices.
Carey Olsen advised Kraken on the Cayman Islands and British Virgin Islands legal aspects of the deal. The legal team was led by partners Richard Munden and Chris Duncan, with support from counsel Katrina Lindsay and associates Catriona Severns, Ella Crowley-Burrows and Simon Galante.
According to Carey Olsen, the transaction incorporates features commonly found in traditional warehouse financing structures to improve liquidity and provide additional protections for investors participating in on-chain lending arrangements.
Chris Duncan, the firm’s head of digital assets and fintech across the Cayman Islands and British Virgin Islands, said the transaction reflects continued activity in the digital assets sector. Richard Munden said the structure adapts elements of traditional finance for blockchain-based lending.
