Crypto exchange Kraken has introduced Flexline, a new product allowing Kraken Pro users to borrow against their digital asset holdings. These fixed-rate loans have terms from two days to two years, with proceeds available in crypto or stablecoins.
Kraken Pro is designed for advanced and institutional traders, differentiating it from Kraken's main platform, which targets beginners. Customers can use supported cryptocurrencies as collateral for near-instant fund disbursement. Annual percentage rates for Flexline loans fall between 10% and 25%.
Collateral is secured in segregated wallets and is subject to liquidation if maintenance requirements are not met or the loan is not repaid by maturity. Early repayment is permitted but may incur a fee. The service is not available in Australia, Brazil, Canada, India, New Zealand, Switzerland, the United Arab Emirates, or the United States.
This launch follows Kraken's recent introduction of tokenized equity perpetual futures for eligible non-US clients. The crypto-backed lending market is seeing increased activity, with Coinbase expanding its collateralized loan offerings and US mortgage lender RateFi incorporating crypto holdings into its program. Decentralized lending protocols collectively hold billions in total value locked, and institutional players like Apollo Global Management are also increasing their involvement in blockchain-based lending infrastructure.