The Kraken NFT market offers lending services

TL; DR fault

  • Kraken will offer lending services through its NFT market.
  • The loan service is one of the many unique features of the Kraken NFT market.

The top American cryptocurrency exchange platform Kraken recently announced that it will launch its NFT market in 2022.

In addition to that information, Kraken CEO Jesse Powell said the NFT department will also allow customers to use their fixed tokens as collateral to access loans and enjoy other services.

said Powell Bloomberg News that Kraken plans to offer custody services for NFTs, as well as the possibility of using NFTs as collateral for loans.

Powell called the functional use of NFT, such as loans with NFT, the “third phase” of a growing ecosystem for digital art and collectibles.

According to Powell, the first phase is speculation, and the second phase is buying art in a way that directly supports the creators.

Loan – just one unique feature of the Kraken NFT market

Kraken is not the only crypto exchange that creates a market for NFT trading. Binance‘ftx’ Coinbase among others, everyone fell into that aspect.

Powell, however, explains that the Kraken NFT market will be different from the others because it would allow users to use their NFTs to gain access to other services.

During an interview with Bloomberg, Powell said: “If you deposit CryptoPunk on Kraken, we want to be able to show the value of that in your account. And if you want to borrow money against it. ”

Powell believes the NFT space is still in its early days, and the usefulness of NFT will be the main focus next year.

NFT loans are becoming popular in the cryptocurrency space. However, most services are offered by DeFi platforms, such as Arcade and Nexo, and Kraken will become the first centralized crypto exchange to adopt this model.

Kraken is one of the leading crypto exchanges in the world, and has been expanding its services in recent months. Last week, the Kraken included AVAX, the original Avalanche blockchain token. Shiba Inu and LUNA, Terra’s original token, have also been listed on the stock exchange in recent weeks.

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