Kraken Set To Let Users Borrow Funds Against Their NFTs

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According to Jesse Powell, the CEO of US crypto exchange , the company is developing a new functionality that would allow its users to borrow money against non-fungible tokens ( NFTs ).

“If you make a cryptoPunk deposit on Kraken, we will be able reflect that value in your account. Powell explained to Bloomberg that he was working on a system to determine the liquidation value for users’ NFTs.

Users will also be able to access custodial services through the NFT marketplace.

This is the latest development in a series of crypto exchanges that are trying to increase their business with NFT owners and integrate new NFT-oriented features on their platforms.

In an interview, Powell stated that San Francisco-based Powell has seen “a tremendous amount” of activity around NFTs in relation to different metaverses.

The chief executive stated that “We believe this is going to become a bigger, bigger thing, so we want to be there.” We are currently working on an NFT platform to provide investors access to the burgeoning NFT marketplace.

The US rival crypto exchange coinbase is also developing its own NFT platform. As of October 14th, 1m registered to participate in the marketplace. This was just 24 hours after the company opened a waitlist for people interested in a peer marketplace that allows users to buy, sell, showcase, and discover tokens.

Crypto exchanges are looking to gain a larger share of the lucrative market by creating their own marketplaces. They also hope to compete with established NFT players like the OpenSeamarketplace , which claims has over 600,000 users and offers access to more 80m NFTs. According to the marketplace, more than USD 10 billion in sales have been handled so far.

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