Sunday, January 23, 2022

Kraken to develop NFT marketplace offering token-backed loans

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The Kraken crypto exchange is developing a market for non-fungible tokens (NFT) where users can take out loans using the tokens as collateral, exchange founder and CEO Jesse Powell said in a Bloomberg News interview published Friday.

  • The market will be the guardian, and the exchange is looking to determine the liquidation value of deposited NFTs so that users can use them as collateral for loans, Powell said.
  • Kraken follows major exchanges like Coinbase and FTX in developing an NFT market as the assets continue to gain popularity. OpenSea, one of the largest markets for NFTs, achieved a trading volume of just over $ 2 billion in the past 30 days according to DappRadar The data.
  • While the decentralized financing project NFTfi, founded in February 2020, and crypto lender Link already offer loans guaranteed by NFT, Kraken will probably be the biggest exchange yet to try it out. The stock exchange is among the top 20 in the world in terms of transaction volume, CoinGecko data Pin up.

Read more: NFTs are more popular than ever despite a sour mood in the larger crypto market


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