US Crypto Exchange Kraken Will Introduce Loans with NFTs as Collateral

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US-based cryptocurrency exchange Kraken is working on a new version of using non-fungible tokens (NFTs), planning to allow users to start using them as collaterals.

In addition, the trading platform will provide its customers with services for storing NFTs.

The company CEO Jesse Powell has said that the platform is running on a system that will determine the liquidation cost of the NFTs:

“If you want to deposit CryptoPunk on Kraken, we need to develop a current value reflection in your account. And if it is necessary, issue the means for the deposit. “

2021 has become the year of non-fungible tokens (NFTs), thanks to participation in this sector of retail and institutional clients and the volume of trade is $2M. Powell has noted the NFT concept is not new, it was based on the crypto industry. He said:

“The first stage is speculation, the second stage is the purchase of art and support for artists, the third stage is the functional use of NFT sound.”

Binance and FTX have already launched their own NFT trading platforms.