Kraken secures innovative on-chain facility

The legal firm facilitated this high-profile deal, showcasing their expertise in navigating complex financial landscapes and ensuring robust legal frameworks for emerging technologies. The transaction merges the strengths of one of the globe’s largest digital asset platforms with a leading on-chain asset manager. 

The advisory team from Carey Olsen was led by partners Richard Munden and Chris Duncan. They received support from counsel Katrina Lindsay and associates Catriona Severns, Ella Crowley-Burrows, and Simon Galante, who addressed all aspects of the transaction related to the Cayman Islands and British Virgin Islands. Chris Duncan, who heads the digital assets and fintech division in the Cayman Islands and BVI, expressed his enthusiasm about the deal, stating, "The Kraken–Maple deal is yet another example of the cutting-edge digital assets work the Carey Olsen team is involved in and highlights our expertise in advising on the most complex of matters. It has been a real pleasure to work on another groundbreaking matter with the Kraken team."

Richard Munden, a key partner in finance and digital assets within the Cayman Islands, elaborated on the innovative aspects of the transaction. He noted, "This transaction adopts features from traditional finance structures for a transaction in the on-chain lending space to enhance liquidity and provide structural protections for investors. It is a great example of the innovative transactions our Cayman and BVI finance and digital assets teams work on for our digital assets clients."

This landmark facility signals a significant step forward in the regulatory landscape for digital asset-backed loans, paving the way for improved structures and enhanced liquidity in this evolving sector