Kraken Launches Flexline, a New Crypto-Backed Loan Product
- Kraken’s new product, Flexline, allows users to borrow against their digital assets without selling them.
- Loans are fixed-rate with terms from two days to two years and annual percentage rates between 10% and 25%.
- Collateral is held in segregated wallets and included in Kraken’s Proof of Reserves attestations, verifying client assets on a 1:1 basis.
- Flexline is not available in several countries including the US, UK, Canada, and Australia.
- The launch follows Kraken’s introduction of tokenized equity perpetual futures for eligible non-US clients.
This launch aligns with a broader trend of increasing crypto-backed lending across exchanges and traditional finance sectors. Coinbase has recently expanded its collateralized loan offerings to include more digital assets for US users.
Kraken’s Flexline enables instant access to liquidity for users by leveraging their crypto holdings as collateral while maintaining asset ownership. (Source)
