Crypto exchange Kraken has introduced a new lending product called Flexline, offering fixed-rate crypto loans exclusively to Kraken Pro users. The product allows traders to borrow against their digital assets without selling holdings, providing liquidity while maintaining market exposure.
Flexline loans carry fixed annual percentage rates ranging from 10% to 25%, with borrowing terms spanning from as little as two days up to two years. Funds can be issued in cryptocurrencies or stablecoins and may be traded on the platform or withdrawn, subject to regional restrictions. The product is not available in several jurisdictions, including the United States, the United Kingdom, Canada and Australia.
Collateral Structure and Risk Controls
Borrowers must pledge supported cryptocurrencies as collateral, which Kraken states are held in segregated wallets and reflected in its Proof of Reserves attestations. While specific loan-to-value ratios were not disclosed, collateral may be liquidated if maintenance thresholds are breached or if loans reach maturity without repayment. Early repayment is permitted but includes a fee.
Growth of Crypto-Backed Lending Across Markets
The launch comes as competitors such as Coinbase expand similar offerings. Meanwhile, decentralized protocols like Aave continue to dominate onchain lending, underscoring renewed demand for crypto-collateralized financing across retail, institutional and DeFi markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.