Kraken Introduces Flexline, Allowing Crypto Holders To Access Liquidity Without Selling Long-Term Assets
In Brief
Kraken has launched Kraken Flexline, a fixed-rate, exchange-operated crypto-backed loan product that lets users access liquidity without selling their digital assets.
Cryptocurrency exchange Kraken announced the launch of Kraken Flexline, a new lending product that enables customers to obtain loans backed by their digital assets under fixed interest terms, positioning the service as a simplified alternative to decentralized lending models and complex credit structures.
The product allows clients to use cryptocurrency held on the exchange as collateral in order to receive loan proceeds in digital assets or stablecoins. The funds can be applied immediately for trading activity or transferred outside the platform, subject to applicable withdrawal limits. Loan agreements are available with maturities ranging from two days to two years, and annualized borrowing costs are set within a fixed range of approximately 10 to 25%, depending on the selected term.
According to the company, the new offering is intended to provide a standardized method for accessing liquidity without requiring users to sell their underlying cryptocurrency holdings. Multiple supported assets can be posted as collateral, and borrowers retain the ability to manage how and where the borrowed funds are deployed.
The firm stated that Kraken Flexline is designed for a different purpose than margin trading, despite both services involving borrowing. Margin products are structured for short-term trading activity and typically feature variable pricing that can change from one position to the next, with exposure closely linked to market fluctuations. By contrast, the new lending product operates as a term loan with predefined repayment schedules, fixed interest rates and the option to withdraw capital for use beyond a single trading strategy, provided collateral requirements continue to be met.
Flexline: A Fixed-Rate, Exchange-Operated Crypto Loan Offering Predictable Leverage And Greater Transparency
Company representatives indicated that the product is not intended to replace margin trading, but to offer an alternative for clients seeking predictable financing costs and greater control over leverage while maintaining long-term exposure to their digital assets. The exchange added that, for participants focused on managing interest expenses, the structure may provide a more stable cost profile than traditional short-term borrowing.
The company also emphasized that the service does not rely on decentralized lending infrastructure. Unlike on-chain lending protocols, which depend on automated smart contracts and pooled liquidity, the new product is operated directly by the exchange using its existing custody, risk management and liquidation systems. The firm noted that this approach is designed to reduce exposure to risks associated with protocol failures, governance changes or automated liquidations triggered by external events.
Under the structure of the loan, clients are informed of how their collateral is held, how borrowing rates are determined and under what conditions liquidation thresholds may apply. The exchange stated that this framework is intended to provide greater clarity around pricing and risk management throughout the life of the loan.
Kraken Flexline is being positioned as a financing tool for several segments of the digital asset market, including active traders seeking fixed-rate leverage, holders of substantial cryptocurrency balances who require liquidity without disposing of assets, and businesses or project teams looking for secured working capital without traditional credit approval processes.
The company characterized transparency and simplicity as the central features of the product, describing Kraken Flexline as a straightforward crypto-backed loan structure intended to offer predictable terms and clearly defined conditions for borrowers.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
