Kraken has launched Flexline, a crypto-backed loan product for its Kraken Pro users. The fixed-rate loans allow clients to borrow against their digital asset holdings without selling them, with terms from two days to two years and annual rates between 10% and 25%. The product is not available in several major markets including the US, UK, and Canada.
Kraken has introduced Flexline, a crypto-secured loan product for users of its Kraken Pro platform. According to the announcement, the fixed-rate loans let users borrow against their digital asset holdings without liquidating them.
Loan terms range from two days to two years, with proceeds issued in crypto or stablecoins. The exchange describes its standard Kraken platform as “geared toward beginners and individual investors, while Kraken Pro is for advanced and institutional traders.”
Customers can post supported cryptocurrencies as collateral and receive funds almost instantly. Annual percentage rates range from 10% to 25%, according to the platform’s website, though specific loan-to-value ratios were not disclosed.
Collateral is held in segregated wallets and included in Kraken’s Proof of Reserves attestations. The exchange says these verify client assets on a 1:1 basis.
Collateral may be liquidated if maintenance requirements are breached or a loan reaches maturity without repayment. Loans can be repaid early using an account balance but are subject to an early repayment fee.
The product is not available in Australia, Brazil, Canada, India, New Zealand, Switzerland, the United Arab Emirates, the United Kingdom, or the United States. This launch follows Kraken‘s recent announcement of tokenized equity perpetual futures on its regulated derivatives platform.
The move aligns with a broader resurgence in crypto-collateralized lending. Coinbase recently expanded its collateralized loan product to support additional digital assets like XRP and Dogecoin.
Outside exchanges, US mortgage lender Rate introduced RateFi, a program allowing verified cryptocurrency holdings to meet underwriting requirements. Decentralized finance lending protocols also continue to scale significantly.
DeFi lending protocols hold about $51.9 billion in total value locked, with about $30.8 billion actively borrowed. Aave accounts for nearly half of that total with just under $26.9 billion in TVL, followed by Morpho protocol at around $5.8 billion.
Institutional capital is deepening its involvement in the sector. On Feb. 15, Apollo Global Management partnered with Morpho to support blockchain-based lending infrastructure.
