Kraken introduces Flexline for Pro users
Kraken has introduced Kraken Flexline, a crypto-backed loan product to Kraken Pro members. The service enables users to borrow against supported digital assets without the need to sell their holdings. The company targets advanced and institutional traders through its Pro platform.
Flexline provides two-day to two-year-term, fixed-rate loans. Borrowers will be able to get proceeds in cryptocurrencies or stablecoins. Therefore, eligible users may trade the funds on the platform or withdraw them, depending on jurisdictional rules. Kraken has restricted access in several countries, including the United States and the United Kingdom.
Annual percentage rates range from 10% to 25%, according to the exchange’s website. Kraken has not disclosed specific loan-to-value ratios. Users may repay loans early through their account balances, although early repayment fees apply.
Collateral structure and risk controls
Kraken demands borrowers to post supported cryptocurrencies as collateral. The funds are credited to the platform virtually immediately upon approval. The exchange maintains collateral in segregated wallets and incorporates it into its Proof of Reserves attestations, which certify client assets on a 1:1 basis.
Source: Kraken
Kraken can sell off collateral in case a borrower does not meet maintenance obligations or does not repay the loan before the maturity date. According to the exchange, these controls are meant to contain credit risk and ensure transparency. The company markets the product as a formalized alternative to unstructured crypto lending services at variable rates.
Crypto-backed lending gains momentum across exchanges, DeFi and traditional finance
Kraken’s launch follows renewed revival of crypto-backed lending markets. Coinbase has recently increased its collateral loan provision. US eligible users are now able to borrow up to $100,000 in USDC with collateral against assets like XRP, Dogecoin, Cardano, and Litecoin.
Holding XRP, DOGE, ADA, or LTC?
Now you can unlock the value of your portfolio without giving up your position.
Borrow up to $100k in USDC against your tokens, instantly, without selling.
Available now in the U.S. (ex. NY). pic.twitter.com/Uozxim3t7C
— Coinbase 🛡️ (@coinbase) February 18, 2026
Decentralized finance lending protocols also continue to grow. DeFiLlama data indicates that the sector carries a total value of approximately $51.9 billion, of which nearly $30.8 billion is borrowed. Apollo Global Management also ventured into the space by partnering in the blockchain-based lending infrastructure.
The trends signal continued interest in crypto-backed liquidity solutions in exchanges, DeFi and traditional finance.