Kraken Launches U.S. Crypto Borrowing With Up to Three Times Buying Power
Kraken Borrow US is available to eligible customers in 48 states, with borrowing tied to collateral and potential automatic sales if a position deteriorates.
Kraken launched Kraken Borrow US on Sept. 24, giving eligible customers in 48 states access to additional cryptocurrency buying power through collateralized borrowing, with New York and Maine excluded.
The product uses a customer’s U.S. dollar balance first. Borrowing applies only to the portion of a cryptocurrency purchase that exceeds the available cash balance. Buying power can reach up to three times the value of eligible assets, depending on collateral and asset eligibility.
Kraken Borrow US supports 27 trading pairs on Bitnomial at launch. More than 48 assets can qualify as collateral. Before a transaction is confirmed, customers see the purchase amount, price, trading fee, borrowing fee and estimated daily interest cost.
The product has no repayment deadline or minimum payment. Customers can repay with U.S. dollars without a fee or sell an asset to repay the balance, although a conversion fee applies to repayment through a sale.
The purchased cryptocurrency remains locked as security and cannot be withdrawn or transferred until the debt is repaid. Borrow health is classified as “Healthy,” “Caution” or “At risk.” If a position deteriorates, some crypto may be sold automatically to cover the debt.
Kraken Borrow US combines a spot trade provided by Payward Interactive Inc. with a spot-margin trade offered through NinjaTrader Clearing LLC, doing business as Kraken Derivatives US. NinjaTrader Clearing is a Commodity Futures Trading Commission-registered Futures Commission Merchant and National Futures Association member. Its NFA ID is 0309379.
Customers with more than $10 million in total investments under applicable commodities law are excluded from the product. Losses can exceed the initial investment, and additional collateral may be required.
