Kraken Working on Marketplace Where Customers Take Loans Backed by NFTs
Kraken recently announced developing a marketplace where customers can use NFTs as collateral to take loans. The venture aims to release the platform in February 2022 at the earliest. With the development, Kraken is directly challenging FTX Exchange and Binance, which are already running NFT marketplaces.
As soon as the news surfaced, traders looked for a Kraken review to read about the platform. Users can click here to find more about the platform, its features, and other important aspects like being the biggest international bitcoin exchange.
The news came from Kraken’s CEO Jesse Powell, who recently interviewed with Bloomberg. Powell stated that depositing a CryptoPunk on Kraken will show its value on the user’s account. Afterward, they can take out loans backed by the NFT.
Powell referred to the famous CryptoPunk collection of 10,000-pixel art that broke the mainstream barrier for NFTs. In addition, the upcoming marketplace by Kraken will offer custody solutions to cater to users demanding more use-cases from NFTs.
With over 8.5 million daily customers among the top crypto exchanges in nigeria, Kraken holds utmost prominence in the NFT arena. Moreover, the platform has increased its user base 2x in the past year. FTX Exchange and Binance have recently launched NFT marketplaces, so Kraken’s announcement is a direct challenge to them.
The market is also waiting for Coinbase to release its NFT marketplace. OpenSea is among the most renowned NFT marketplaces; however, it does not offer custody solutions. That is why Kraken’s value proposition is key for the market.
The NFT market surging in popularity and value is not surprising anymore. In March, the industry even witnessed an art piece selling for 69 million dollars. Kraken’s eagerness to join the industry is natural with such figures on display.