Flexline, a crypto-backed loan product, was introduced by cryptocurrency exchange Kraken, enabling Kraken Pro users to borrow against their digital asset holdings without having to liquidate them.
The release on Wednesday states that the fixed-rate loans have periods ranging from two days to two years, and the proceeds are issued in stablecoins or cryptocurrency that may be withdrawn or exchanged on the platform based on regional eligibility.
Customers can use Flexline to submit compatible cryptocurrencies as collateral and get money quickly after being approved. Kraken’s website states that annual percentage rates vary from 10% to 25%; however, the exchange does not reveal precise loan-to-value ratios.
The exchange claims that Kraken’s Proof of Reserves attestations, which include collateral maintained in separate wallets, verify client assets on a 1:1 basis. If maintenance obligations are not met or the loan matures without payments, collateral may be liquidated.
According to Kraken, there is an early payback cost associated with using an account balance to repay debts. Australia, Brazil, Canada, India, New Zealand, Switzerland, the United Arab Emirates, the United Kingdom, and the United States do not carry the product.
The new capabilities, which provide qualified non-US clients with 24/7 leveraged exposure to major US stock indexes, gold, and specific firms like Apple, Nvidia, and Tesla, come a day after Kraken unveiled tokenised equity perpetual futures on its regulated derivatives platform.
You need to login in order to Like
Leave a comment