Kraken launches fixed-rate crypto loans for Pro users

Written by Nate Kostar , Staff Writer Reviewed by Robert Lakin , Staff Editor Kraken introduces fixed-rate crypto loans for its Pro users 9 hours ago The crypto exchange’s new Flexline product lets Pro users borrow against digital assets at fixed rates of 10%–25% APR for terms of up to two years. Listen 0:00 News Cointelegraph in your social feed Follow our Subscribe on Crypto exchange Kraken has launched Flexline, a crypto-backed loan product that allows Kraken Pro users to borrow against their digital asset holdings without selling them. According to Wednesday’s announcement , the fixed-rate loans carry terms ranging from two days to two years, with proceeds issued in crypto or stablecoins that can be traded on the platform or withdrawn, depending on regional eligibility. The company describes its eponymous product as “geared toward beginners and individual investors, while Kraken Pro is for advanced and institutional traders. ” Using Flexline, customers can post supported cryptocurrencies as collateral and receive funds almost instantly. Annual percentage rates range from 10% to 25%, according to Kraken’s website , though the exchange did not disclose specific loan-to-value ratios. Collateral is held in segregated wallets and included in Kraken’s Proof of Reserves attestations, which the exchange says verify client assets on a 1:1 basis. Collateral may be liquidated if maintenance requirements are breached or the loan reaches maturity without repayment.