Kraken's Flexline Lets You Borrow Against Your Crypto Without Selling — Here's How It Actually Works
92d ago · 1 source
Kraken published a deep dive into its Flexline product, a credit line that allows users to borrow funds using their cryptocurrency holdings as collateral. The product is positioned for builders and investors who want liquidity without triggering taxable events by selling their crypto. The feature essentially lets users keep crypto on their balance sheet while accessing cash.
WHY IT MATTERS
Imagine you own a house that's gone up in value, but you need cash for a new project. Instead of selling the house, you could take out a home equity loan — you get the money you need while still owning the house. Flexline works similarly but with crypto: you can borrow money using your Bitcoin or other crypto as collateral, without having to sell it. This matters because selling crypto can trigger taxes and means you miss out if the price keeps going up. However, these products carry risk — if your crypto drops in value, you might have to add more collateral or face liquidation, meaning the platform sells your crypto to cover the loan.
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Educational only — not financial advice.