Genesis, a subsidiary of Digital Currency Group, is now accepting non-fungible tokens (NFTs) as collateral for loans and derivatives deals, the Financial Times has learned. Joshua Lim, Head of Derivatives Trading at Genesis, says the decision is driven by the broad adoption of digital collectibles:
"NFTs come up in almost every conversation."
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However, Genesis will only take the so-called "blue-chip" NFTs such as the Bored Ape Yacht Club that have historical significance. The move comes after cryptocurrency exchange Kraken revealed it 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, said the exchange is also working on a system that will determine the liquidation value of the NFT deposited.
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