Every investor has faced this situation: You’re holding an asset you believe in. Then something new catches your attention, but you don’t have free cash on hand, and suddenly you’re doing mental math about what to sell to fund this next move.
It’s a frustrating position. Not because the opportunity isn’t real, but because the choice feels artificial. You don’t have the dry powder to act on it. In an ideal world, you shouldn’t have to exit a long-term position you believe in just to enter one you’re excited about.
That’s the problem Kraken Borrow is designed to solve.
Kraken Borrow is a feature that extends your buying power beyond your cash balance, backed by the crypto you already hold on Kraken. Your portfolio now counts toward every buy, without having to sell anything.
The mechanics are straightforward. You buy the way you always have, on the same screen. Your cash is spent first. When a purchase goes beyond your cash, Kraken Borrow covers the rest, backed by eligible assets in your portfolio. At confirmation, you see exactly what’s cash and what’s borrowed.
When you’re ready, you repay on your own terms, with no fixed repayment schedule and no rigid deadlines. It’s a revolving structure, meaning you can draw, repay, and draw again as your needs change.
Crypto-backed borrowing isn’t a new concept, but it has historically skewed toward professional traders comfortable with complex instruments and high leverage. Kraken Borrow is built for a different audience.
Designed for a range of everyday investors, the feature includes a 1x leverage cap, a familiar buy screen with borrowing built in, and a structure that prioritizes clarity over complexity.
Whether you’re a long-term holder looking to stay invested through a volatile period, or an active investor looking to capitalize on something new, Kraken Borrow gives you a practical trading tool without requiring you to navigate a steep learning curve.
Collateral and margin levels are clearly defined throughout, so the experience stays transparent from start to finish.
The best financial tools remove tradeoffs that don’t need to exist. With Kraken Borrow, selling a position to fund another doesn’t have to be your only option.
Now, instead of choosing between holding and acting, you can do both. Kraken Borrow is available in the Kraken app for eligible customers.
Kraken Borrow is a crypto-collateralized borrowing feature. Borrowing involves risk, including the potential loss of collateral through liquidation if your Loan Maintenance Ratio falls below the required threshold. Interest rates are variable and may change over the life of an open-ended loan. An origination fee of 0.5% applies. Collateral assets are ring-fenced and cannot be withdrawn while a loan is active. Kraken Borrow is not available in all jurisdictions and is not currently available in the US, UK, Canada, Australia, UAE, Brazil, or India. Geographic restrictions and eligibility criteria apply. See https://support.kraken.com/articles/borrow for full terms.
These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, stake, or hold any cryptoasset or to engage in any specific trading strategy. Kraken does not and will not work to increase or decrease the price of any particular cryptoasset it makes available. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position.
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