Kraken has launched Flexline, a crypto-backed lending product enabling Kraken Pro users to borrow against digital assets at fixed annual rates of 10% to 25% without selling their holdings.
The loans run from two days to two years, with proceeds issued in crypto or stablecoins that can be traded on the platform or withdrawn subject to regional eligibility restrictions.
The company said:
“The product is geared toward beginners and individual investors, while Kraken Pro is for advanced and institutional traders.”
Under Flexline, supported cryptocurrencies are posted as collateral and held in segregated wallets included in Kraken’s Proof of Reserves attestations, while collateral may be liquidated if maintenance thresholds are breached or loans reach maturity without repayment.
The exchange said early repayment is permitted using an account balance but incurs a fee, and the product is unavailable in Australia, Brazil, Canada, India, New Zealand, Switzerland, the United Arab Emirates, the United Kingdom and the United States.
The launch follows Kraken’s introduction of tokenised equity perpetual futures on its regulated derivatives platform, offering eligible non-US clients round-the-clock leveraged exposure to major US stock indices, gold and companies including Apple, Nvidia and Tesla.
Kraken’s move comes amid renewed momentum in crypto-collateralised lending across exchanges and decentralised finance, where protocols hold roughly $51.9 billion in total value locked with $30.8 billion actively borrowed, as institutional players such as Apollo Global Management deepen ties with blockchain-based lending infrastructure.