Kraken Is Developing an NFT Marketplace That Will Enable the Collateralization of NFTs
Kraken intends to join the NFT bandwagon with its own marketplace, but with an emphasis on new sorts of services.
Jesse Powell, the CEO and creator of the venerable US crypto exchange, stated that the business is now working on building an NFT marketplace. However, he said that it would include additional features, such as the ability for users to utilise their digital collection as collateral for loans.
Powell recently discussed the company’s goals with Bloomberg, stating that 2021 would be remembered as the year of non-fungible tokens.
Indeed, the trend has spread well beyond the cryptocurrency sector, with singers, athletes, corporations, and even politicians releasing digital works of art.
Due to the soaring demand, a slew of crypto businesses have developed NFT markets, with Kraken aiming to be the next in line. Powell maintained, however, that it would be more than a marketplace for purchasing, selling, and storing digital art.
“If you deposit a CryptoPunk on Kraken, we want the value of that coin to be reflected in your account. Additionally, if you want to borrow money against that.”
Kraken’s CEO also anticipates that NFTs will exceed their present phase of “speculation” in the coming years, stating that “phase two will be art purchases and artist support, and phase three will be practical usage of NFTs.”
Powell also discussed the famous memecoin Shiba Inu’s recent listing on Kraken. He emphasised that such additions are feasible in response to increased user demand or if someone as prominent as Elon Musk tweets about it, referencing to Elon Musk’s fondness for Dogecoin.
“There is no extremely exciting new technology or anything like that; it is mostly a community-driven passion.” It’s essentially a memecoin that has garnered community interest, and sometimes you simply have to include them.” – he concluded.