- Kraken has launched Flexline, a crypto-backed loan service for its Pro users, offering fixed-rate terms between two days and two years.
- The product is aimed at advanced traders and institutions seeking liquidity without selling their digital asset holdings, but is unavailable in key markets like the U.S. and U.K.
- The launch reflects a sector-wide trend, with companies like Coinbase also expanding collateralized lending and traditional finance exploring crypto-secured mortgages.
On Wednesday, crypto exchange Kraken launched Flexline, a new crypto-backed loan product allowing its Pro users to borrow against their digital assets. According to the official announcement, the company describes Kraken Pro as a platform for “advanced and institutional traders.” Users can post supported cryptocurrencies as collateral to receive funds almost instantly, with annual percentage rates ranging from 10% to 25% as detailed on its website.
The collateral for these loans is held in segregated wallets and is included in Kraken’s Proof of Reserves attestations. Consequently, the product is notably unavailable in several major markets, including Australia, the United States, and the United Kingdom. This launch follows Kraken’s recent introduction of tokenized equity perpetual futures on its regulated derivatives platform.
Meanwhile, this move is part of a broader industry resurgence for crypto-collateralized lending. Coinbase recently expanded its own collateralized loan product, adding support for assets like XRP and Dogecoin. Even traditional finance is engaging, with U.S. mortgage lender Rate creating a program where cryptocurrency can count toward loan underwriting requirements.
Decentralized finance also continues to see significant activity in this niche. According to DefiLlama data, DeFi lending protocols hold approximately $51.9 billion in total value locked. Consequently, institutional capital is moving deeper into blockchain lending, highlighted by a recent partnership between Apollo Global Management and the Morpho protocol.
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