Kraken Founder Jesse Powell Unveil Plans For a Custodial NFT Marketplace
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TL;DR Breakdown
- CEO and Founder of Kraken Exchange discloses plans to provide custody services for NFT holders.
- Kraken to provide avenue for users to collaterize their NFTs for borrowing funds.
- Jesse Powell predicts exclusive functional uses of NFTs in 2022.
The CEO and Founder of leading cryptocurrency exchange Kraken, Jesse Powell has disclosed plans to create a NFT marketplace that would offer custodial services to its customers, following a Bloomberg report today.
It is noteworthy that the concept of non-fungible tokens have found its way to the heart of many enthusiasts in the recent months. Hence, it has gained the most of its recognition and adoption in this year. With concerns to further enhance the industry, experts are making new developments towards NFTs.
In a bid to extend its services to NFT users, Jesse Powell says the Kraken team is putting efforts to building a non-fungible token marketplace that would serve customers beyond providing them with digital arts.
Users Can Collaterize NFTs to Borrow Funds Via Kraken
Per the announcement, the Kraken NFT marketplace will adopt a model that would allow the customers to use their NFTs as collateral to borrow funds on the platform. Jesse Powell explained this saying;
“If you deposit a CryptoPunk on Kraken, we want to be able to reflect the value of that in your account. And if you want to borrow funds against that.”
Hence, the exchange will not only feature a marketplace that offers custodial services for NFT holders, it would as well provide an avenue for users to borrow against their cryptopunk.
Powell Predicts an Evolving Use Cases For NFTs
The founder’s concern to build a NFT marketplace that would feature liquidation services for its users is birthed from his predictions that the use cases for non-fungible tokens will grow in 2022.
According to Powell, the concept of non-fungible tokens began as a system that enables the acquisition of artworks and also support artists. Hence the adoption of non-fungible tokens began with people using it as collectors’ items.
It also served as a way for people became wealthy through their ventures into cryptocurrencies to show off a very expensive Twitter profile picture. With all of these happening in 2021, there are tendencies that the use cases for non-fungible tokens will grow next year.
Powell expressed his opinion on the matter saying;“Phase one was speculation, phase two is buying art and supporting artists, phase three is going to be functional uses of NFTs. Using deposited NFTs as collateral on Kraken could be one of those uses.”
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