Kraken has introduced a new lending product called Flexline designed for its Pro users. The service allows experienced traders and institutional clients to borrow funds using their cryptocurrency holdings as collateral without needing to sell their assets. Flexline offers fixed rate loans with predictable borrowing costs which can be beneficial for users managing defined trading strategies.
Loans can be taken out for periods ranging from two days up to two years with annual percentage rates between ten and twenty five percent. Borrowers can receive funds in either cryptocurrency or stablecoins depending on regional eligibility and use the proceeds for trading on the Kraken platform or external withdrawals where permitted.
Collateral is held in segregated wallets and included in Kraken’s Proof of Reserves attestations verifying that client assets are fully backed. Kraken retains the ability to liquidate collateral if maintenance thresholds are breached or if a loan is not repaid on time. Users can also repay loans early using their account balance although early repayment fees may apply.
The launch of Flexline comes as crypto secured lending sees renewed interest. Traders are seeking ways to access liquidity without selling assets during volatile market conditions. The fixed rate structure of Flexline provides certainty over borrowing costs compared with variable rate options and may appeal to professional market participants.
Regulatory restrictions prevent Flexline from being available in countries including the United States, the United Kingdom, Canada, Australia, and India. Kraken has positioned this product within its Pro trading ecosystem while continuing to serve retail users on its main platform.
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