TL;DR
- Kraken flexible lineA fixed rate and crypto-guaranteed loanis now available for ECP qualified1 Kraken Pro users through 40 US states and Washington, DC.
- THE The APR is fixed for the entire duration and visible before your confirmation, so that the cost of borrowing can be modeled with real figures before your commitment.
- 48 crypto assets and 6 fiat currencies are accepted as guarantee, with loan conditions of 2 days to 2 years and a 75,000 USDC minimum equivalent (Equivalent to 100,000 USDC in Delaware and Minnesota).
- The guarantee remains on Kraken throughout the duration of the mandate; capital can be withdrawn off-platform to a linked bank account or stay on the platform to trade, stake or manage positions.
A third way, beyond sale or conservation
Flexline is a fixed-rate loan backed by the crypto you already hold on Kraken, available to ECP qualified users in 40 US states and Washington, DC.2
The fundamental value proposition is simple. Hold your position. Access the capital you need. Your crypto remains on Kraken.
How Flexline Really Works
The structure is built in such a way that the decision can be evaluated with real numbers and not with estimates. You select the assets you want to use as collateral, consult the fixed APR and the liquidation threshold3 before confirming, and keep the profits on Kraken or withdraw them to a linked bank account. When you settle the loan, the guarantee is returned in full.
Some details to know from the start:
- Fixed APRs range from 7% to 25% over the entire term, with short-term BTC and ETH borrowing available at less than 10%
- Loan terms range from 2 days to 2 years
- 48 crypto assets and 6 fiat currencies are accepted as collateral
- Minimum loan amount is USDC 75,000 equivalent (USDC 100,000 equivalent in Delaware and Minnesota)
- A 0.50% origination fee applies when opening the loan
- A loan monitoring dashboard shows the collateral value and liquidation threshold throughout the term.
When borrowing fits the situation better than selling
When might Flexline be right for you? When you need:
Working capital versus a position held for the long term
A founder occupies a significant position in ETH, acquired over several years. A short-term capital need arises, such as a bridge before the close of a financing round or a real estate transaction with a defined timeline. The default instinct is to sell. With Flexline, the position remains intact in Kraken, the founder draws down on it at a known fixed rate, and the capital is withdrawn to a bank account. When the loan is settled, the collateral returns.
Deployment of the balance sheet without unwinding a cash position
An entity’s treasury holds BTC as part of its reserve thesis. A distinct opportunity emerges, perhaps a private investment, external capital commitment, or DeFi position elsewhere, and capital is needed to follow through on it. Selling BTC means restructuring the treasury and exiting a position that the entity has been intentional about. Flexline offers a structured alternative: borrow against BTC at a fixed APR, deploy the funds off-platform and settle the loan when the time comes.
Flexibility on the platform while keeping a long-term position intact
A Kraken Pro user has a long-standing BTC position that he intends to hold. They want capital available to stake, hold stablecoins, or manage other positions on Kraken without closing the BTC position to do so. Flexline allows the BTC position to remain where it is while capital becomes available at a known fixed cost.
To start
The decision to sell a position in which you have gained conviction should not be forced by a need for capital or a passing opportunity. Flexline offers serious holders a structured third option, with the cost known in advance, the collateral retained on Kraken, and the capital free to go where it needs to go.
Find out what your holdings can do without leaving your wallet.
1 Eligible Contract Participant (ECP) is a classification defined under the U.S. Commodity Exchange Act. It generally includes corporations, partnerships, and similar entities with total assets exceeding $10 million; regulated financial institutions and brokers; certain government entities; and individuals who have invested more than $10 million on a discretionary basis (or $5 million when entering into a transaction to manage risk). ECP qualification is required to access Kraken Flexline in the United States. Full eligibility criteria are available at kraken.com/legal.
2 Flexline is currently not available in CA, CT, MA, MS, MT, ND, NV, NY, PR, SD and VT.
3 If the value of the collateral falls below the threshold, it may be liquidated.
Using Kraken Flexline involves risks, may have tax implications and may result in loss of capital. Borrowed assets subject to withdrawal limits. Availability of Kraken Flexline is subject to certain limitations and eligibility criteria. This content is for informational purposes only and does not constitute a recommendation to use Kraken Flexline. Consult the Kraken Flexline conditions on kraken.com/legal.
