Kraken unveils Flexline at 10–25% APR for Pro users

Key Takeaway:

• Fixed-rate, crypto-backed loans for Kraken Pro users at 10–25% APR.
• Borrowers can access liquidity without selling supported digital assets.
• LTV ratios undisclosed; collateral segregated and included in Proof of Reserves.

Kraken has launched Flexline, a fixed-rate, crypto-backed lending product for Kraken Pro users, with annual percentage rates between 10% and 25%, as reported by Cointelegraph. The report says borrowers can access liquidity without selling supported digital assets. It adds that the service is unavailable in the United States, the United Kingdom, Canada, Australia, and other jurisdictions. It also notes Kraken has not publicly disclosed loan-to-value (LTV) ratios; collateral is described as held in segregated wallets and included in Proof of Reserves attestations.

Fixed rates provide predictability on interest costs over the term. However, without published LTV and liquidation thresholds, borrowers cannot independently estimate margin call buffers or forced-sale mechanics. These disclosures are central to understanding volatility, counterparty, and liquidation risk.

Loan terms range from two days to two years, as covered by Blockonomi. The product is structured as a fixed-rate, crypto-backed loan for Kraken Pro users, rather than variable-rate margin financing. Term selection can influence the total interest paid over the life of the loan.

Fees include a 0.5% origination charge, according to Kraken Support. The support material also states an early termination fee equal to half of the remaining interest payments for the agreed term. These charges are paid in addition to accrued interest. Effective borrowing costs can therefore exceed the headline APR in some scenarios.

For illustration, a borrower taking $10,000 for 30 days at 12% APR would owe about $100 in interest, plus a $50 origination fee. If repaid halfway through the term, an early termination fee approximating half of the remaining interest could apply, per the stated policy. Actual costs vary by term, rate, and timing of repayment.

The launch notice framed the objective in broad terms. “Kraken, one of the longest-standing, most liquid and secure cryptocurrency platforms, today announced the launch of Flexline, a crypto-secured loan offering…” as reported by Business Wire. The positioning underscores an attempt to reintroduce exchange-based lending with fixed-rate predictability.

At the time of this writing, Coinbase Global (COIN) traded at $157.67, down 1.60%, based on Nasdaq real-time pricing. Market conditions can affect collateral valuations and liquidation risk, though Flexline’s nominal rates are fixed over the chosen term.

This article is for information purposes only and does not constitute financial advice. Borrowers should review official documentation and consider independent risk assessments.

Disclaimer:
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