Kraken, the cryptocurrency exchange, has launched Flexline, a fixed-rate term loan product that allows clients to borrow against their cryptocurrency holdings without liquidating their positions.
The product supports multi-asset collateral and integrates with Kraken Pro, the exchange's professional trading interface, with funds available in cryptocurrency or stablecoins.
Loan terms run from two days to two years, with borrowing rates of 10% to 25% annual percentage rate (APR) depending on term length.
Kraken said Flexline is designed as an alternative to margin trading and decentralised finance (DeFi), offering defined repayment schedules and fixed rates rather than the variable pricing and position coupling typical of margin products.
The company said the product avoids on-chain smart contract exposure and governance risks associated with DeFi protocols, operating instead under Kraken's own custody, risk-management and liquidation controls.
Funds can be used directly on Kraken Pro or withdrawn off-platform, subject to eligibility requirements and withdrawal limits.
Kraken noted the product carries risks, including the potential loss of capital and possible tax implications for borrowers.
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The launch extends Kraken's product range beyond spot and derivatives trading into secured lending, a segment that has grown alongside broader institutional and retail interest in using digital assets as collateral.
Availability is subject to eligibility criteria, and the company did not disclose the size of the lending facility or specify which jurisdictions the product will serve at launch.
The recap
- Kraken launches Flexline, a fixed-rate crypto-secured term loan
- Loan terms range from 2 days to 2 years
- Borrowing rates set at 10–25% APR; funds withdrawable off-platform