thecoinrepublic.com
- A marketplace is being developed by crypto exchange Kraken where the clients would be able to get loans against NFTs as a collateral.
- Kraken had been looking forward for launching the NFT marketplace since February, as told by Kraken CEO Jesse Powell.
- NFT marketplaces are already being operated by FTX and Binance, competitors of crypto exchange Kraken.
A New NFT Marketplace
An NFT marketplace is under development by the crypto exchange Kraken where NFTs of clients would be allowed to use as collateral against a loan, as per an interview with Kraken CEO Jesse Powell. “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,” stated Powell.
Powell was pointing towards 10,000-pixel art pictures in the CryptoPunks collection, which is acknowledged as a neoteric project for NFTs, or virtual portrayal of music, art, and other things active on the blockchain.
Utility of NFTs will boom next year as per Jesse Powell, “Phase one was speculation, phase two is buying art and supporting artists, phase three is going to be functional uses of NFTs.”
Custody facilities will be offered by the NFT marketplace and may attract individuals who are willing to do more with their NFTs apart from collecting them. As told by Jesse Powell, Kraken has been looking to launch the NFT marketplace since February. As of now, 8.5 Million customers are being served by the crypto exchange, almost two times compared to the previous year.
In addition, an infrastructure platform, Staked, was procured by Kraken. Non-custodial crypto staking is offered by the platform for luring fresh investors. Crypto awards can be earned by the customers now, while having control over their virtual assets.
Kraken was established back in 2011 and is now one of the greatest crypto exchanges globally, ranking amongst top-tier exchanges in terms of volume, digital asset reserves, and liquidity, as per the data obtained from CMC.
Will the NFT Marketplace Perform?
The announcement by Kraken represents how the loans backed by NFTs are getting popularised due to more DeFi platforms like Nexo and Arcade are practicing the offering of loans against NFTs. A $15 Million funding round was closed by Arcade in December as an attempt to increase its loan offering and lure more investors to its NFT marketplace.
FTX and Binance, competitors of Kraken, have already started their marketplaces, and Coinbase contains a waiting list of millions of users that are looking forward for entering its NFT marketplace. In the meantime, OpenSea is one of the greatest and most popular nft marketplaces that does not provide custodial services.
The Crypto market has achieved a milestone by reaching $3 trillion in 2021. As the NFT sector has grown heavily due to the increasing popularity of NFTs, the NFT market could touch the $17.7 Billion milestone by the end of the year.
Finally, it is just a matter of time until Kraken’s NFT marketplace goes live against already established NFT marketplaces and how it performs in the market.