Kraken to Give Clients Way to Borrow Funds Against NFTs
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Dec. 24, 2021
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Cryptocurrency exchange Kraken is working on a new marketplace for non-fungible tokens (NFTs) where users will be able trade, hodl and even use NFTs as collateral to borrow funds. Kraken CEO, Jesse Powell, told Bloomberg in an interview that the exchange is currently working on a new system that will determine the liquidation value of the NFT deposited.

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"If you deposit a CryptoPunk on Kraken, we want to be able to reflect the value of that in your account. And if you want to borrow funds against that," Powell said.

China's State News Media Xinhua to Giveaway 110K NFTs

The Kraken CEO also noted that the technology behind NFTs is nothing new. He said the concept for NFTs was first presented when blockchain developers who proposed "tagging" parts of the Bitcoin blockchain with metadata.

"I guess it took the right combination of events, something really popular like NBA Top Shots that really got people talking about it," Powell added.

Earlier in December, Kraken acquired a non-custodial staking platform called Staked. With the acquisition, the exchange wants to position itself as a "leading provider of staking services." While the price of the deal remains undisclosed, Kraken said this was "one of the largest crypto industry acquisitions to date."

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