Kraken Introduces Flexline for Crypto-Collateral Lending to Kraken Pro Traders

According to Kraken’s official announcement on Feb. 25, Flexline offers fixed borrowing costs and transparent terms, letting Kraken Pro users deploy loan funds on-platform or externally, with collateral covered by its Proof of Reserves.

Summary

On Feb. 25, Kraken officially announced Flexline, a collateral-based lending service for Kraken Pro users. The product enables traders to borrow against existing digital assets with fixed borrowing costs and clear terms, use loaned funds within Kraken or externally, and have collateral stored in secure wallets included in Kraken’s Proof of Reserves system.

Terms & Concepts
  • Collateral lending: A loan secured by pledged assets—in this case, cryptocurrencies—enabling borrowers to access funds without selling their holdings.
  • Proof of Reserves: An exchange’s cryptographic verification method that demonstrates it holds assets matching customer balances, supporting transparency and solvency claims.
  • Kraken Pro: Kraken’s advanced trading interface offering professional-grade tools and features for experienced cryptocurrency traders.