Need a loan but you want to use your NFT as collateral? No problem, Kraken’s got you! The cryptocurrency exchange Kraken is developing a non-fungible token marketplace that would provide custody services, and considers a system where customers can use their NFTs as collateral to borrow funds against, Kraken Founder and CEO Jesse Powell told Bloomberg in an interview.
“If you deposit a CryptoPunk on Kraken, we want you to be able to reflect the value of that in your account,” said Powell. The exchange is “working on a system to determine the liquidation value of the NFT deposited,” he added.
The push into NFTs allows Kraken to rival with OpenSea, one of the largest NFT marketplaces that do not custody assets.
In the future, Powell expects the use cases for NFTs to grow in 2022, he told Bloomberg. This comes at a time when “NFT” global searches exceeded “crypto” and “bitcoin” for the first time ever last week.