Kraken Borrow Update Turns Idle Collateral Into A More Flexible Trading Tool

Kraken said the feature is live for eligible jurisdictions and supports a range of collateral assets, though it did not specify which tokens qualify or the loan-to-value ratios on offer. The exchange framed the update as a way to keep traders active in volatile markets without forcing them to liquidate positions to raise cash.

The move lands as crypto lenders compete for sticky retail and institutional flow. Binance and Bybit have rolled out similar margin-lending products in recent months, and Kraken's update closes a feature gap that had left some of its users moving funds to rivals for leveraged exposure.

Kraken did not disclose uptake figures or total value locked in the Borrow product. The exchange said the feature is available immediately to qualifying users.