Kraken launches crypto borrowing service in 48 U.S. states

Kraken has launched ‘Kraken Borrow US’, a cryptocurrency borrowing service available to eligible customers in 48 U.S. states. The product allows users to use certain digital assets as collateral to increase their buying power by up to three times the value of their eligible holdings.

The service is designed to utilize a customer’s U.S. dollar balance first, with borrowing only applying to the portion of a purchase that exceeds available cash. At launch, the product supports 27 trading pairs on Bitnomial and more than 48 assets may qualify as collateral. Before confirming a transaction, users are presented with the purchase amount, price, trading fees, borrowing fees, and estimated daily interest costs.

While there are no fixed repayment deadlines or minimum payments, interest accrues on outstanding balances. The service includes liquidation risks; if a position’s health deteriorates, assets may be automatically sold to cover the debt. The product combines spot trades from Payward Interactive Inc. with spot-margin trades through NinjaTrader Clearing LLC, a registered Futures Commission Merchant.

Certain restrictions apply, including the exclusion of customers in New York and Maine, as well as individuals with more than $10 million in total investments under applicable commodities laws. Users are cautioned that losses can exceed the initial investment.