TLDR
- Kraken launched Flexline, a fixed-rate crypto-backed loan product for Kraken Pro users with APRs of 10%–25%
- Loan terms run from two days to two years, paid out in crypto or stablecoins
- Coinbase also expanded its crypto loan product, letting US users borrow up to $100,000 in USDC against assets like XRP and Dogecoin
- DeFi lending protocols now hold $51.9 billion in TVL, with $30.8 billion actively borrowed
- Apollo Global Management partnered with Morpho in February to support blockchain-based lending infrastructure
Kraken has launched a new lending product called Flexline for users of its Pro platform. The product lets traders borrow against their crypto holdings without selling them.
Introducing Kraken Flexline
Borrow against your crypto without selling it
Access liquidity without giving up long-term exposure pic.twitter.com/ZT839QHDZ5
— Kraken Pro (@krakenpro) February 25, 2026
Loans are available at fixed annual percentage rates between 10% and 25%. Terms range from two days up to two years.
Funds are issued in cryptocurrency or stablecoins. Borrowers can trade those funds on the platform or withdraw them, depending on where they live.
Kraken Pro is the exchange’s platform aimed at advanced and institutional traders. The main Kraken exchange is aimed at beginners and individual investors.
Collateral posted by borrowers is held in segregated wallets. Kraken includes this collateral in its Proof of Reserves attestations, which verify client assets on a 1:1 basis.
If a borrower fails to meet maintenance requirements or lets a loan expire without repayment, Kraken can liquidate the collateral. Loans can be repaid early using account balances, but an early repayment fee applies.
Kraken has not disclosed specific loan-to-value ratios for the product. The exchange says approvals are near-instant after a user posts supported crypto as collateral.
Flexline is not available in the US, UK, Canada, Australia, Switzerland, UAE, Brazil, India, or New Zealand.
Coinbase Also Expands Crypto Lending
The Flexline launch comes as Coinbase also expanded its collateralized loan product. Eligible US users can now borrow up to $100,000 in USDC against assets including XRP, Dogecoin, Cardano, and Litecoin.
US mortgage lender Rate launched a program called RateFi that lets qualified borrowers use verified crypto holdings to meet underwriting requirements. It allows digital assets to count as reserves and, in some cases, income, without requiring liquidation.
DeFi Lending Continues to Grow
Decentralized lending protocols now hold approximately $51.9 billion in total value locked, according to DefiLlama. Around $30.8 billion of that is actively borrowed.
Aave leads the sector with just under $26.9 billion in TVL. Morpho protocol is second with around $5.8 billion.
On February 15, Apollo Global Management, which manages $940 billion in assets, partnered with Morpho to support blockchain-based lending infrastructure. Apollo said it could acquire up to 90 million MORPHO tokens as part of the deal.
Kraken’s Flexline launch also follows the exchange’s announcement of tokenized equity perpetual futures on its regulated derivatives platform. That product gives eligible non-US clients 24/7 leveraged exposure to US stock indexes, gold, and individual companies including Apple, Nvidia, and Tesla.
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