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Kraken Launches US Crypto Borrowing With Up To 3x Buying Power

  • Kraken has launched Kraken Borrow US for eligible customers in 48 states.
  • Users can borrow against supported assets to buy additional crypto, with total buying power of up to three times eligible collateral value.
  • The product has no fixed repayment deadline or minimum payment, but interest and liquidation risk still apply.

**ID:** B25-01

**Site:** Bitcoinist

**Status:** READY

**Author:** Bitcoinist Editorial Team

**Focus Keyword:** Kraken

**Image Keyword:** Lending

**Category:** Technology

**Tags:** Kraken, Borrowing, Crypto, Lending, US

**Primary Source:** https://ift.tt/jpn3JMD

Borrowing Only Kicks In After Cash Is Used

Kraken’s model is designed so a customer’s available cash is spent first.

Borrowed funds cover the portion of a purchase that exceeds the user’s USD balance.

The amount available depends on the value and eligibility of assets held as collateral, with total buying power reaching as much as three times the value of eligible holdings.

Kraken says users see the trade fee, borrowing fee and daily interest cost before confirming a transaction.

There is no fixed repayment deadline and no required minimum payment.

That flexibility does not make the debt free.

Interest accrues while the borrowed balance remains outstanding, and falling collateral values can eventually create liquidation risk.

US Exchanges Are Rebuilding Leverage Inside Regulated Structures

Margin and borrowing products have always been popular in crypto markets.

Offering them in the U.S. has been much harder.

Kraken says the new product operates using its regulated U.S. derivatives infrastructure and is being made available only to eligible customers.

The structure is different from an offshore perpetual futures account, but the economic idea is familiar.

A customer uses existing assets to increase purchasing power.

That can amplify gains if the newly purchased crypto rises.

It can also amplify losses.

The launch comes as U.S. exchanges gradually widen the product range they can offer after years of regulatory uncertainty.

Coinbase has pushed deeper into crypto-backed lending, while regulated derivatives products are expanding across multiple platforms.

Kraken Borrow is another piece of that shift.

The company is trying to keep U.S. customers inside one platform for spot trading, derivatives and now collateralized borrowing.

For users, the convenience is obvious.

So is the risk.

Borrowed buying power can make a portfolio move much faster than the underlying cash balance — in either direction.

*This article was written by the News Desk and edited by [Samuel Rae](https://ift.tt/c4pOdrN



from Bitcoinist.com https://ift.tt/Yu267Cv
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