| What to Know: – Crypto-secured term loan lets clients borrow without selling their digital assets. – Loan-to-value ratio governs draw capacity and liquidation risk as prices move. – Fixed-rate, fixed-term financing under centralized custody versus DeFi or cross-margin. |
As reported by Business Wire (https://www.businesswire.com/news/home/20260225892767/en/Kraken-Launches-Flexline-a-Crypto-Secured-Loan-Offering-Flexible-Access-to-Liquidity), Kraken has launched Flexline, a crypto‑secured term‑loan product that lets clients borrow against digital assets without selling them. The structure is designed to convert portfolio collateral into spendable liquidity while maintaining market exposure.
This matters because crypto‑backed loans can reduce the traditional trade‑off between holding for the long term and needing near‑term cash flow. The loan-to-value (LTV) ratio governs how much a borrower can draw and when collateral may be liquidated if asset prices fall.
Compared with DeFi lending and exchange margin borrowing, Flexline presents fixed-rate, fixed-term financing under centralized custody. That means rate certainty and exchange‑administered collateral management, rather than on‑chain variability or cross‑margin mechanics inside a trading account.
As reported by Cointelegraph (https://www.tradingview.com/news/cointelegraph:1fded74b3094b:0-kraken-introduces-fixed-rate-crypto-loans-for-its-pro-users/), Flexline offers fixed APRs between 10% and 25% with terms from two days to two years. The product targets Kraken Pro users and is unavailable in several jurisdictions, including the United States, the United Kingdom, and Canada.
Kraken positions Flexline as a way to access liquidity without sacrificing long‑term holdings. “Crypto holders have long faced a frustrating trade-off: hold your assets for the long term, or sell them to access liquidity. Kraken Flexline solves this,” said Kraken in its product announcement (https://blog.kraken.com/product/flexline/borrow-against-your-crypto-without-selling-it). In the same materials, the company also lists a 0.5% origination fee, interest assessed every four hours in the borrowed asset, early repayment options that may carry a fee, and the ability to withdraw loan proceeds off‑platform subject to limits.
Operationally, borrowers post digital assets as collateral and monitor LTV as market values move. If collateral value falls and LTV breaches internal thresholds, positions can be partially or fully liquidated to cover the outstanding balance.
At the time of writing, Bitcoin was about $69,127, with measured volatility around 10.41%. Such conditions can accelerate LTV changes and increase liquidation risk on crypto‑backed loans like Kraken Flexline.
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