TL;DR
- Borrow Kraken now works as part of your normal shopping flow. Your money comes first, and the eligible cryptocurrencies you already hold cover the rest.
- Your purchasing power combines your cash balance and your crypto on the platform, so you can buy more without selling anything.
- Reimbursement is flexible: no fixed duration and no early repayment fees.
- A 1x lever cap keeps the functionality simple and accessible to ordinary investors, not just professional traders.
Every investor has faced this situation: you own an asset you believe in. Then something new catches your eye, but you have no cash available, and suddenly you’re doing a mental calculation of what to sell to fund this next move.
It’s a frustrating position to be in. Not because the opportunity isn’t real, but because the choice seems artificial. You don’t have the dry powder to work on it. In an ideal world, you shouldn’t have to leave a long-term position you believe in just to get into a position you’re passionate about.
This is the problem Kraken Borrow is designed to solve.
What is the Kraken loan?
Kraken Borrow is a feature that extends your purchasing power beyond your cash balance, backed by the crypto you already hold on Kraken. Your wallet now counts for every purchase, without having to sell anything.
The mechanics are simple. You buy as you always have, on the same screen. Your money is spent first. When a purchase exceeds your money, Kraken Borrow covers the rest, backed by eligible assets in your portfolio. When confirming, you see exactly what is cash and what is borrowed.
When you’re ready, you repay on your own terms, with no fixed repayment schedule or rigid deadlines. It’s a revolving structure, meaning you can withdraw, repay, and withdraw again as your needs change.
Designed for everyday investors
Cryptocurrency-backed borrowing is not a new concept, but it has historically skewed toward professional traders comfortable with complex instruments and high leverage. Kraken Borrow is designed for a different audience.
Designed for a wide range of everyday investors, the feature includes a 1x leverage cap, a familiar buy screen with built-in borrowing, and a structure that prioritizes clarity over complexity.
Whether you are a long-term holder looking to stay invested during a volatile period or an active investor looking to capitalize on something new, Kraken Borrow gives you a convenient trading tool without requiring you to navigate a steep learning curve.
Collateral and margin levels are clearly defined, so the experience remains seamless from start to finish.
Put your wallet to good use
The best financial tools remove compromises that don’t need to exist. With Kraken Borrow, selling one position to fund another doesn’t have to be your only option.
Now, instead of choosing between holding and acting, you can do both. Kraken Borrow is available in the Kraken app for eligible customers.
Kraken Borrow is a crypto-collateralized borrowing feature. Borrowing carries risks, including the potential loss of collateral through liquidation if your loan maintenance ratio falls below the required threshold. Interest rates are variable and can change over the life of a permanent loan. A 0.5% origination fee applies. Collateralized assets are reserved and cannot be withdrawn while a loan is active. Kraken Borrow is not available in all jurisdictions and is currently not available in the United States, United Kingdom, Canada, Australia, United Arab Emirates, Brazil, or India. Geographic restrictions and eligibility criteria apply. See full conditions.
These materials are intended for general information purposes only and do not constitute investment advice or a recommendation or solicitation to buy, sell, stake or hold any crypto-asset or to engage in any specific trading strategy. Kraken does not and will not endeavor to increase or decrease the price of any particular cryptoasset it makes available. The unpredictable nature of crypto-asset markets can result in losses of funds. Tax may be payable on any returns and/or increases in the value of your cryptoassets and you should seek independent advice on your tax situation.
