A trader sitting on a pile of Bitcoin no longer has to sell it just to raise cash. Kraken is capitalizing on this concept by introducing Flexline, a fixed-rate lending product backed by cryptocurrency, which allows Pro users to access liquidity without compromising their digital assets.
The product is built for Kraken Pro traders, who can pledge a broad range of cryptocurrencies as collateral and receive crypto or stablecoins almost on the spot. Borrowers can pump those funds straight into trading strategies on the platform or pull them out entirely, depending on where they are located. Loan terms stretch from two days to two years, giving traders enough room to work whether they need quick capital or a longer financing runway.
Fixed Rates and Full Transparency
Flexline carries annual percentage rates between 10% and 25%, shaped by structure and risk parameters. While revolving credit products often change costs abruptly, Flexline establishes repayment terms upfront. Kraken parks posted collateral in segregated wallets and keeps its hands off it entirely—no rehypothecation. Those assets also sit within the company’s Proof of Reserves framework, which cryptographically confirms that client collateral is backed one-to-one.
Darius Tabatabi, Head of Exchange Trading at Kraken, said the product was designed to cut through a frustration that crypto holders know well—the choice between dumping assets to free up cash or wrestling with borrowing products that hide the fine print. Flexline, in his view, closes that gap. For now, the service stays out of reach for users in the United States, the United Kingdom, and a handful of other markets where regulations get in the way.
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Kraken’s Bigger Ambitions
The launch slots neatly into a wider push from Kraken. The company quietly filed for a potential IPO in early 2026 and pulled in $800 million during late 2025 at a $20 billion valuation, with Citadel Securities and Jane Street among its backers. It rolled out tokenized equity trading through xStocks for non-U.S. users and bolstered its derivatives and real-world asset capabilities by snapping up NinjaTrader and Backed Finance.
The timing works in its favor. Crypto-collateralized lending blew past $53 billion in 2025, with institutions increasingly leaning on Bitcoin as treasury collateral. Kraken is firmly establishing its presence in structured digital asset credit with the launch of Flexline.
