Kraken’s expansion into NFTs will offer users crypto loans via non-fungible tokens that they can use as collateral.
Known to be one of the largest crypto exchanges out there, and, with NFTs around the corner, Kraken will be stepping into the market of art-based digital assets.
At this very moment, the prices of NFTs are somewhat unpredictable, and the value that they hold is hard to determine. However, Jesse Powell, the CEO of Kraken, was quite optimistic about the future of NFTs.
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In an interview with Bloomberg, he mentioned that Kraken is currently in the works of implementing an NFT marketplace where people will be able to take out loans backed by their non-fungible tokens. Likewise, Kraken will be looking to add a feature that could determine the potential price of an NFT.
The CEO of Kraken is looking forward to making this possible in early 2022, and that the NFT exchange is currently moving in the right direction, with the last step being to properly utilize non-fungible tokens, stating:
"Phase one was speculation, phase two is buying art and supporting artists, phase three is going to be functional uses of NFTs."
With NFT prices being very hard to determine, Kraken will most likely start off by accepting CryptoPunk collectibles as collateral which are currently one of the most valued NFTs, and, according to NFT Stats, had an average price of $275.2k per piece over the last week.
Other platforms like Nexo have already implemented crypto financing capabilities by using NFTs as collateral, so it’s only a matter of time before more companies and crypto exchanges catch up.