Jess Powell: Kraken will consider issuing loans secured by NFT | |
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| The Kraken cryptocurrency exchange is working on creating an NFT marketplace that will offer a wide range of services, including those related to lending. The head of the company, Jess Powell, said this in an interview with Bloomberg. According to him, the platform will provide customers with a custodial service. Kraken is also considering the possibility of creating a system in which customers can use NFT as collateral for loans. "If you place a CryptoPunk token on Kraken, we want to be able to reflect its value on your account. If desired, you will be able to borrow funds against this deposit. The company is working on a system for determining the liquidation value of deposited NFTs," Powell said. The head of the exchange believes that in 2022 the scope of application of NFT will significantly expand. In his opinion, the use of tokens as collateral is only one of the possible options. "The first phase is speculation, the second is the purchase of works of art and the support of artists, the third is the functional use of NFT," he explained. Lending secured by NFT is a relatively new [10 — virus] direction. The concept of such loans was introduced in January last year, when developer Alex Masmei announced the Rocket project, which was never launched. Now there are several players on the market offering similar services in one form or another. Among the largest are NFTfi, Strip Finance, Drops DAO and Unbanked. Due to the risks associated with NFT, these platforms issue loans at high rates - from 15% to 20%. Since we are talking about representatives of the DeFi sector, lenders can make a significant profit. The amount of loans in this segment already reaches millions of dollars. For example, in October, a loan of $1.42 million was approved on the NFTfi platform. The software was provided by NFT from Larva Labs - Autoglyph #488. Venture investors also support the young direction. On December 22, the Arcade platform raised $15 million in a Series A funding round. Its launch is scheduled for the first quarter of 2022. Recall that in December Kraken acquired the Staked betting platform. The company called the deal "one of the largest acquisitions in the industry," but did not disclose financial details. | |
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