thecoinrise.com
One of the most famous cryptocurrency exchanges all around the world, Kraken is building a marketplace for non-fungible tokens (NFTs), where users will be able to arrange loans using the tokens as collateral, according to the exchange’s founder and CEO Jesse Powell in an interview published Friday on Bloomberg News’ website.
Powell explained that the marketplace is designed to provide custody and that the exchange is now working on determining the liquidation value of NFTs deposited so that customers can use them as collateral for loans.
Kraken follows major crypto exchanges
Kraken is following major crypto exchanges which have launched their own NFT marketplace. Coinbase Global Inc., one of the oldest crypto exchanges, is all set to launch its own NFT Marketplace, whereas FTX.US is also not behind to do the same on Solana Blockchain. The success and potential of crypto exchanges jumping into the NFT world are huge, which is clearly visible, with Coinbase receiving more than 1 million sign-ups within a day of the NFT marketplace announcement.
According to DappRadar data, OpenSea, one of the most major marketplaces for NFTs, had a total trading volume of slightly over $2 billion in the last 30 days, making it one of the most active exchanges.
NFT-backed loans are currently available through decentralized finance initiative NFTfi, which was formed in February 2020, and cryptocurrency lender Nexo, but Kraken will likely be the largest exchange to offer them, as it is the most liquid. According to data from CoinGecko, the exchange is among the top 20 most active in the world in terms of the trading volume.
Kraken has been very active these days and recently acquired the non-custodial staking company Staked. The company says that the main aim behind the acquisition is to assist investors in earning interest while staking without abandoning custody of their tokens in a smooth and secured manner.