Kraken considers secured loans in exchange for NFT

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Kraken, a marketplace for non-fungible tokens (NFTs), wants to offer a new NFT-based lending service. In exchange for a token as collateral, Kraken will provide funds to the user. Although the initiative is still in the works, it could prove to be an industry first and even a first concrete use of NFTs.

“I would like to obtain a loan of $5000, in exchange I offer you my BoredAPE token, bought at $3500, but whose value continues to increase.” It seems surreal as an exchange, but this type of deal could soon become reality… Kraken, a marketplace in the world of cryptoassets, is seeking to diversify its user base and wants to promote a new use of NFTs. So, in exchange for a token (of a certain value), the company would provide you with funds to make another purchase. This is a new kind of offer that would basically cater to customers who want to do more than just collect digital tokens.

“’If you deposit a CryptoPunk on Kraken, we want to be able to reflect the value of it in your account. And if you want to borrow funds against it,’ Kraken is working on a system to determine the liquidation value of the deposited NFT,” emphasized a Bloomberg News interview with Jesse Powell, founder of Kraken For now, such a service is only in draft form, but it could quickly become a reality.

The first concrete use of NFTs?

Throughout the past year, an NFT boom has been witnessed across multiple industries. Whether in the field of art, culture, cinema, sport or video games, there are many examples. And the same goes for companies that work in some way with these new tokens, to create a stronger relationship with their fans or the users of their service. Meanwhile, the stock market is still figuring out the real values ​​of NFTs to allow customers to use their tokens as collateral. “Phase one was speculation, phase two is buying art and supporting artists, phase three is going to be functional uses of NFTs,” Kraken CEO added.

Kraken’s goals in developing this new service also include attracting users from larger exchanges such as Binance, FTX, and Opensea (for NFTs). Kraken has just over 8.5 million users, double from last year. But this figure is still far from those of sector leaders like Binance (more than 85 million customers), but we know that in this area everything can change very quickly.

Axel Barre

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