Kraken Launches Crypto-Backed Loan Product for Pro Users

Kraken, a leading cryptocurrency exchange, has introduced Flexline, a fixed-rate crypto-backed loan product aimed at its Pro users. This innovative offering enables borrowers to access liquidity without having to sell their digital assets, providing a more flexible alternative to traditional lending solutions.

Flexline's key features include fixed APRs ranging from 10% to 25%, depending on the structure and risk parameters. Borrowers can post collateral across a wide range of supported cryptocurrencies and instantly receive crypto or stablecoins, which can be deployed directly into trading strategies on Kraken or withdrawn off-platform.

The product's transparent and predictable nature makes it an attractive option for active traders seeking to manage their defined strategies without the need to liquidate long-term holdings during volatile market conditions. Kraken emphasizes that collateral posted through Flexline is held in segregated wallets and not rehypothecated, ensuring that clients' assets are protected.