TL;DR:
- Kraken Pro users can request funds with fixed rates and terms ranging from two days to two years.
- Capital is disbursed in cryptocurrencies or stablecoins, allowing for on-platform trading or external withdrawal.
- Collateral is held in segregated wallets and integrated into the exchange’s Proof of Reserves audits.
The exchange sector continues to evolve; recently, the launch of Flexline took place—a revolutionary crypto-backed loan product from Kraken designed for users seeking liquidity without having to liquidate their positions.
With this innovation, investors can use their digital holdings as collateral to receive funds instantly. Through this structure, traders can maintain their market exposure while obtaining working capital for other investments or operational needs.
Flexibility and Security in Collateralized Financing
The features of these loans include annual interest rates between 10% and 25%, adapting to different risk profiles. Additionally, Kraken emphasized that assets deposited as collateral are backed by their transparency protocols and 1:1 verification.
It is important to note that this trend is not isolated, as platforms like Coinbase and DeFi protocols like Aave are also expanding their offerings. However, Flexline stands out due to its direct integration with the Pro ecosystem, facilitating much more agile and centralized portfolio management.
While the advantages are numerous, the product has significant geographical restrictions for regulatory reasons, excluding markets such as the United Kingdom, the United States, and Australia. On the other hand, the launch coincides with the introduction of tokenized perpetual futures, strengthening the company’s derivatives offering.
In summary, this move highlights the resurgence of guaranteed lending in both decentralized finance and traditional institutions. By offering tools that maximize capital efficiency, Kraken positions itself competitively against the growing demand for global on-chain credit solutions.
