If launched successfully, Kraken will be the first top 5 crypto exchange to offer NFT-backed funding.
Crypto exchange Kraken is developing a non-fungible token (NFT) marketplace, founder Jesse Powell told Bloomberg News. On it, users will be able to issue loans secured by tokens.
This platform will act as a custodian of digital assets. According to Powell, crypto exchange developers are currently studying the NFT “salvage value” system. In the future, users will be able to use tokens as collateral for loans.
According to the head of the crypto exchange, the time has come for “functional use of NFT”. Kraken is ranked fourth in Coinmarketcap’s ranking of cryptocurrency exchanges with a trading volume of $1.5 billion in the last 24 hours.
This year, the NFT market experienced massive development. According to TheBlock, as of mid-November, the trading volume of non-exchangeable tokens totaled $8.8 billion, of which 60% was in art and collectibles, and the remaining 40% was in NFT games. Trading volume on the largest NFT market, OpenSea, totaled $2.39 billion over the past 30 days, according to DappRadar.
FTX, Huobi and Binance have also set up their own NFT platforms. America’s largest cryptocurrency exchange Coinbase plans to launch the marketplace by the end of this year.
Notably, Kraken will be the first major cryptocurrency exchange to issue loans guaranteed by NFT. Similar services are already offered by the DeFi NFTfi project and the landing platform Nexo.
The crypto exchange is also planning to offer staking services. For this, the platform acquired Staked, a non-custodial startup focused on developing tools for staking cryptocurrencies.
Read also: The crypto industry has attracted more investment in 2021 than in history.