Kraken founder and CEO Jesse Powell says that the exchange is creating a custodial marketplace where users can borrow funds using NFTs as collateral.
Powell notes that the non-fungible token marketplace would offer custody services for digital art collectors.
Deposited NFTs like CryptoPunk would reflect their value in the holder’s account, and the exchange would have a system to ascertain its liquidation value.
The founder of Kraken terms 2021 as the breakthrough year when non-fungible tokens went mainstream. He adds that many corporations are stepping into the cryptocurrency sector through NFTs.
The executive who founded Kraken in 2011 says that the use cases of the non-fungible tokens would expand beyond just collectibles.
The news comes as major cryptocurrency exchanges strengthen activities in the new space, with Binance and FTX already operating NFT marketplaces.
Kraken continues to trail its industry peers with spot exchanges daily trading volumes at $1 billion compared to Binance’s $18 billion and $3.7 billion by Coinbase.