Kraken to Develop NFT Marketplace Offering Token-Backed Loans
The marketplace will determine NFTs’ liquidation value before they are used as collateral.
Dec 24, 2021 at 9:16 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/CTL2UWGZGBCDJHSQG7DOY4GEBE.jpeg)
The artists rolled into Miami with a wrapped bus touting their new NFT project. (Eli Tan/CoinDesk)
Crypto exchange Kraken is developing a marketplace for non-fungible tokens (NFTs) where users can arrange loans using the tokens as collateral, the exchange’s founder and CEO Jesse Powell said in a Bloomberg News interview published Friday.
- The marketplace will provide custody, and the exchange is figuring out how to determine the liquidation value of NFTs deposited so that users can use them as collateral for loans, Powell said.
- Decentralized finance project NFTfi, founded in February 2020, and crypto lender Nexo already offer NFT-backed loans, but Kraken will probably be the biggest exchange thus far to try it. The exchange is among the top 20 globally by trading volume, data from CoinGecko show.
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