The Kraken cryptocurrency exchange is developing a marketplace where customers can use their non-fungible tokens as collateral for loans, according to a Bloomberg interview with CEO Jesse Powell.
âIf you deposit a CryptoPunk on Kraken, we want to be able to reflect the value of it in your account. And if you want to borrow money against that,â Powell told Bloomberg.
Powell was referring to the CryptoPunk collection of 10,000 pixel-art images which is considered a groundbreaking project for NFTs, or digital representations of art, music, and other objects that live on blockchains.
The Kraken Marketplace would provide on-call services and may appeal to people who want to do more with their NFTs beyond collection, Powell said. He told Insider in an interview earlier this month that Kraken aimed to open an NFT market as early as February. Kraken currently serves 8.5 million customers, nearly doubling its base in the past year.
Bloomberg noted that Kraken’s biggest rivals, Binance and FTX Exchange, have launched NFT markets and that the Coinbase crypto exchange has a waiting list of millions of people who want to join its NFT marketplace. OpenSea, meanwhile, is one of the largest NFT markets in the world, but it doesn’t offer custodial services.
The cryptocurrency market has exploded to reach a valuation of over $ 3 trillion in 2021, in part because the NFT section of the market has gained in value largely as digital art has gained in value. popularity. TVN sales could reach a record $ 17.7 billion in 2021, according to Cointelegraph Research.
Highlighting such growth, the 225-year-old Christie’s auction house sold an NFT artwork in March for a record $ 69 million.