Kraken operates on the NFT marketplace and will enable the collateralization of NFTs.

Kraken intends to join the NFT bandwagon with its own marketplace, but it also intends to create new sorts of services.

Jesse Powell, the CEO and founder of the renowned US crypto exchange, stated that the firm is now creating an NFT marketplace. However, he stated that it would include additional features, such as the ability for users to utilize their digital collection as collateral to borrow dollars against.

In a recent interview with Bloomberg, Powell highlighted the company’s objectives, stating that 2021 will be recognized as the year of non-fungible tokens.
Indeed, the demand for such collections has spread well beyond the bitcoin sector, with musicians, athletes, corporations, and even politicians creating digital works of art.

Due to the high demand, other crypto businesses have developed NFT markets, with Kraken aiming to be the next in line. Powell, on the other hand, claims that it will be more than just a platform for buying, selling, or keeping digital art.

“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.”

Kraken’s CEO also believes that NFTs will exceed their present phase of “speculation” in the coming years, stating that “phase two is going to be buying art and supporting artists, and phase three is going to be functional uses of NFTs.”

Powell also mentioned the recent listing of Shiba Inu, a famous memecoin, on Kraken. He mentioned that such things are conceivable if there is more user demand or if someone as powerful as Elon Musk tweets about it, referencing to his fondness for Dogecoin. He added:

“There’s not incredibly interesting new technology there or anything; it’s just largely community-driven interest. It’s basically a memecoin that has the community’s attention, and sometimes you have to just list those.” 

Patrick

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