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Kraken plans a marketplace where customers can get loans backed by their NFTs

According to a Bloomberg interview with CEO Jesse Powell, Kraken is working on a marketplace where users might use their NFTs as loan collateral. Powell said that Kraken planned to launch an NFT marketplace as soon as February. Binance and FTX Exchange, Kraken’s competitors, already have NFT marketplaces.

Kraken plans a marketplace where customers can get loans backed by their NFTs

Image Source: Crypto Academy

Customers can get loans backed by their NFTs

Exchange of cryptocurrencies According to a Bloomberg interview with CEO Jesse Powell, Kraken is working on a marketplace where consumers may use their non-fungible tokens as collateral for loans. “We want to be able to show the value of your CryptoPunk in your account if you deposit one on Kraken. And if you want to borrow money against it, you can do so “According to Bloomberg, Powell stated.

‘Next year is really going to be the year of NFTs,’ according to Kraken’s CEO.

Powell was referring to the CryptoPunk collection of 10,000 pixel-art images, which is regarded as a ground-breaking effort for NFTs, or blockchain-based digital representations of art, music, and other commodities.

According to Powell, Kraken’s marketplace would offer custodial services and could appeal to consumers who want to do more with their NFTs than just collect them. In an interview with Insider earlier this month, he stated that Kraken planned to launch an NFT marketplace as soon as February. Kraken now has 8.5 million customers, which is roughly double the number it had a year ago.

Kraken’s larger competitors Binance and FTX Exchange have launched NFT markets, and crypto exchange Coinbase has a million-strong waiting list for its NFT marketplace. Meanwhile, OpenSea is one of the largest NFT marketplaces in the world, but it does not provide custody services.

The cryptocurrency market expanded to a value of more than $3 trillion in 2021, thanks in part to the NFT segment of the market increasing in value as digital art became more popular.

According to Cointelegraph Research, NFT sales could reach a new high of $17.7 billion in 2021. In March, the 225-year-old auction house Christie’s set a new world record by selling an NFT art piece for $69 million.

Christie’s said the new format helped it achieve its best sales in five years and rounded off a historic year of business with $150 million in non-fungible token sales in 2021.
The 255-year-old auction house announced this week that overall sales are on course to reach $7.1 billion this year, up 22percent from 2019, when the coronavirus pandemic was still unfolding. When the virus first spread over the world in 2020, sales were up 54percent.

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Also read: Shiba Inu was the most viewed cryptocurrency in 2021, not Bitcoin: CoinMarketCap

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