Kraken, one of the leading crypto-asset trading platforms, said it will develop an NFT marketplace that offers token-backed loans.
Jesse Powell, founder and CEO of Kraken, gave an interview to Bloomberg News. In the interview, he mentioned that the platform has developed an NFT marketplace where users can issue loans using tokens as collateral. The platform is now working on how to determine the liquidation value of NFTs that users send to the platform to be used as collateral for a loan.
With this move, Kraken joins Coinbase and FTX, other major crypto-asset trading platforms that are developing or announcing plans to develop an NFT marketplace.
On the other hand, this move of the platform does not represent a first. DeFi project NFTfi and crypto lending platform Nexo also offer NFT-backed loans. However, Kraken stands out for being the largest crypto-asset platform to try it.
