Kraken has unveiled a new crypto-backed loan offering called Flexline, aimed at allowing users to borrow against their digital assets. This product caters specifically to Kraken Pro users, offering fixed-rate loans with terms that vary from two days to two years. The loans can be disbursed in either cryptocurrency or stablecoins, contingent on regional eligibility.
Annual percentage rates for Flexline range between 10% and 25%, although specific loan-to-value ratios have not been provided. Users can use supported cryptocurrencies as collateral, with funds being available almost immediately. The collateral is safeguarded in separate wallets and included in Kraken’s Proof of Reserves confirmations, ensuring a 1:1 verification of client assets.
Early repayment of loans is possible but incurs a fee, and the service is not accessible in several countries, including the United States and the United Kingdom. This launch follows Kraken's recent introduction of tokenized equity perpetual futures, enhancing trading options for eligible clients.