Kraken Borrow

To use Kraken Borrow, you need to:

• Have completed identity verification on your account

• Hold eligible crypto on Kraken that counts toward your borrowing limit

• Be in a market where Kraken Borrow is available

Kraken Borrow is available in most markets where Kraken operates. If it’s available in your country, you’ll see it in your Kraken mobile app. While this feature is not supported on Kraken web for desktop, your borrowed funds can still be used there.

When you buy crypto, you'll see a single "buy up to [amount]" figure. This combines the cash in your account (EUR in the EEA, USD elsewhere) and the amount your portfolio can back. You can spend up to that figure in the normal buy flow.

Your cash is always spent first. If you choose to spend more than your available cash, the difference is borrowed automatically as EURC (EEA) or USDG (other markets) and converted into the asset you're buying. You don't need to open a loan separately.

Note: this is the order your funds are spent when you buy. It's different from the order interest is charged once you have a loan (see "What does it cost?" below).

Yes. If you just want stablecoins in your account, you can open a loan on its own. Choose how much you want to borrow, and the funds land directly in your account as EURC (EEA) or USDG (other markets). From there you can hold them, convert them, trade with them, or withdraw. You don't have to make a purchase to use Kraken Borrow.

In the EEA, you borrow EURC, a stablecoin designed to always be worth €1 — so €100 EURC is worth €100. In other markets, you borrow USDG, a stablecoin designed to always be worth $1 — so $100 USDG is worth $100.

This is true even when you use Kraken Borrow to buy another asset: you borrow EURC or USDG, and it's converted into the asset you're buying as part of the purchase.

Yes. Your assets stay in your portfolio the entire time.

Your borrowing limit is the maximum amount you can borrow right now. It’s based on the value and type of crypto you hold on Kraken and updates automatically as the value of your portfolio changes. Check your personalised limit in the Borrow Centre.

Not every asset counts the same toward your borrowing limit. Larger, more established assets like Bitcoin (BTC) and Ethereum (ETH) count for up to 99% of their market value, while more volatile assets count for less.

You can see how much each asset contributes here.

The minimum amount is 1.01 EURC in the EEA, or 1.01 USDG in other markets. The maximum is your borrowing limit.

Yes. You can keep trading, buying, and withdrawing as normal while the loan is active. If something would leave too little to cover your loan, we’ll warn you.

Yes. As long as you have borrowing limit available, you can borrow again. The new amount gets added to your existing loan, so your balance goes up when you borrow and comes down when you repay.

The Borrow Centre shows you:

• Your current loan balance

• Your borrowing limit

• How much you have left to borrow

• Your interest rate, and next interest charge (every 4 hours)

Almost anything you can buy with cash, excluding BNB, xStocks, and equities.

What you borrow is always EURC (EEA) or USDG (other markets). When you buy another asset using Kraken Borrow, the borrowed EURC/USDG is converted into the asset you're buying as part of the purchase, and regular trade fees apply to that conversion, the same as a cash purchase.

You can repay from the Borrow Centre, in full or in parts. There’s no fixed schedule and no repayment fee.

Your loan stays open until you repay it. There’s no fixed end date.

The interest rate is based on supply and demand for loans, and is the same for everyone. You’ll get 60 days’ notice before any change, and you can repay anytime with no fee. The rate will never go above 25%.

You’ll be notified by email and push notification at least 60 days before any change. Keep notifications on so you don’t miss it.

If the value of your crypto falls, your borrowing limit falls with it. This is monitored continuously, and the latest figure is always in the Borrow Centre.

If things start to get risky, you’ll get a warning so you can repay or add more funds. If you don’t act on the warning, some of your assets may be sold to cover the loan. A warning is always sent first.

Warnings are sent by in-app message, push notification, and email. You’re responsible for making sure you can receive these, so keep notifications switched on.

If the loan does need to be settled, assets are used in this order: the stablecoin you borrowed first, then any cash, and only then your other crypto.

Loans aren’t backed by specific assets. All your loans share the same portfolio as backing — no single asset is assigned to any one loan.

Here's a worked example to show how interest builds and what happens when the rate changes.

What it costs at different points in time

Interest is calculated on the amount you owe and accrues every 4 hours. The Day 90 figure assumes the rate changed from 15% to 14% APR at day 61 — the kind of change you’d be notified about at least 60 days in advance, with the option to repay any amount fee-free before it took effect.

Because your BTC is worth twice the loan to start with, a 20% or even 50% drop in BTC price wouldn't put your loan at immediate risk — you'd be warned well before any of your crypto would need to be sold to cover the loan.

Kraken Borrow is a crypto-backed loan. The risks below are important to understand before you borrow.

• Forced sale of your crypto. If your crypto loses too much value, you’ll get a warning so you can repay or add more funds. If you don’t act, some of your crypto may be sold to cover the loan. A warning is always sent first.

• Your interest rate could rise. The rate can change with at least 60 days’ notice and will never go above 25%. If you don’t want the new rate, you can repay any amount, fee-free.

• Tax consequences. If your crypto is sold to repay a loan, this may count as a taxable event. Speak to a tax advisor if you’re not sure how this affects you.

• Market volatility. Crypto prices can move quickly.

• Stablecoin risk. Your repayment obligation is in EURC (EEA) or USDG (other markets). In rare cases, stablecoins can lose their equivalence (“peg”) to their reference currency.

• You’re responsible for receiving warnings. Warnings are sent by push notification, in-app message, and email.

• No consumer credit protections. Kraken Borrow is not a regulated credit product.

Only borrow what you can afford to repay, and only if you’re comfortable with the risks of crypto price changes.

• EURC. A euro-denominated stablecoin designed to always be worth €1. Kraken Borrow loans in the EEA are made and repaid in EURC.

• USDG. A US dollar-denominated stablecoin designed to always be worth $1. Kraken Borrow loans outside the EEA are made and repaid in USDG.

• Peg. The value a stablecoin is designed to track (€1 for EURC, $1 for USDG). A stablecoin can, in rare cases, trade above or below its peg — known as a “depeg.”

• Borrowing limit. The maximum amount you can borrow right now, based on the crypto you hold. Shown in the Borrow Centre.

• Borrow Centre. The section of the Kraken App where you open loans, see your buying power, track active loans, and make repayments.