Kraken’s NFT Marketplace To Allow Users Borrow Funds Against CryptoPunks
Crypto exchange platform, Kraken is one step away from developing its very own NFT marketplace.
The marketplace would allow users buy and sell various jpegs.
The exchange’s CEO, Jesse Powell, had stated that digital art collectors may also be able to borrow against their collection.
According to him, any CryptoPunk deposited on Kraken, would reflect it’s value in the depositors account,”
He also added that a CryptoPunk could be used as collateral to borrow other cryptocurrencies or stablecoins.
The financialization of NFTs makes up “phase three” of this sector’s development, said Powell.
“Phase one was speculation, phase two is buying art and supporting artists, phase three is going to be functional uses of NFTs,” he said.
What Are Crypto Punk:
A crypto Punk is the earliest version of NFT’s
NFT’s can be defined as non Fungible tokens, which value are tied down to the nature of token possessed in a particular wallet.