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Kraken founder and CEO Jesse Powell recently shared In an interview with Bloomberg News, the cryptocurrency exchange will launch a non-fungible token (NFT) market that will allow users to borrow funds from their NFT.
Powell explained that the company plans to enter the NFT field in early 2022 and hopes to add this feature to determine the liquidation value of the NFT and whether it can be used as collateral for loans.
“If you deposit a CryptoPunk on Kraken, we hope to reflect its value in your account,” Powell said, “if you want to borrow funds.”
However, the value of NFT is everywhere. Only a small part of token owners hold as much digital collectibles as CryptoPunk, with a reserve price of 66.9 Ether (Ethereum) Or US$273,673 at the time of publication.
According to Powell, NFT utility will explode next year:
“The first stage is speculation, the second stage is to buy artworks and support artists, and the third stage will be the functional use of NFT.”
also, Kraken recently acquired Staked, An infrastructure platform that allows non-custodial crypto collateral to attract new investors. Kraken customers will now be able to receive crypto rewards and benefits while retaining control of their digital assets.
Founded in 2011, Kraken has become one of the world’s largest cryptocurrency exchanges. ranking According to CoinMarketCap’s data, it ranks among the top in terms of average liquidity, trading volume and digital asset reserves.
related: Nexo cooperates with Three Arrows Capital to launch NFT lending and art financing services
Kraken’s statement shows that as more DeFi platforms such as Arcade and Nexo provide this new loan model, NFT-backed loans are becoming more and more common. As Cointelegraph recently reported, Arcade completes $15 million financing In December, as part of a broader effort to expand its products and attract more investors to use its mortgage NFT platform.
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