Kraken CEO and co-founder Jesse Powell recently spoke with Bloomberg News and confirmed that the blockchain exchange launching a non-fungible token (NFT) marketplace, enabling users to borrow funds against NFTs on the platform.
Powell said that in early-2022 the firm plans to enter the NFT space and is looking for ways to add the value to an NFT and determine whether or not the value is adequate to be used for collateral.
We would like to reflect the value in your wallet if you’ve ever deposited a CryptoPunk on Kraken. If you want to borrow funds against it.
To one side of the spectrum stands the token’s percentage of NFT valuation, and, on the other side of the spectrum, stands the CryptoPunk’s logbook floor value at 66.9 Ether (ETH) or $273,673 at the time of publication.
NFTs are projected to explode in the coming year according to Powell.
“Phase one was speculation, phase two is buying art and supporting artists, phase three is going to be functional uses of NFTs.”
Kraken also acquired Staked, a crypto staking platform set up by an infrastructure platform that allows non-custodial staking, in order to attract new investors. Kraken clients will now be able to earn crypto rewards and yield while retaining custody of their digital assets.
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Kraken was established in 2011 and has since become one of the largest cryptocurrency exchanges worldwide, ranking among the top based on its volume of normal liquidity, trading volume, and other resources.
Well-known DeFi lending platforms, such as Arcade and Nexo, are indicating an increasing demand for a new class of loans using NFTs as collateral. Kraken’s announcement was made to that effect. Arcade quietly closed a $15 million funding round in December 2018, as part of a further effort to step up its service offerings and attract investors to its platform offering collateralized NFTs.
Elora is PR and Outreach Manager at Crunchoid Inc. Outside of work, Elora enjoys Flywheel, tacos, the tennis, and adventuring around the globe.