Jesse Powell says that by 2022 the new exchange will serve as a market place for NFT loans and nonfungible coins. Jesse Powell (Kraken co-founder, CEO) stated in a Bloomberg News interview that the cryptocurrency exchange will create an NFT marketplace so users can borrow dollars to their NFTs.

Powell said that Powell intends to enter the NFT market in the early 2022. He also stated that he hopes to offer a function to allow users to determine the liquidation value of an NFT and whether the NFT can be used to secure a loan.

Powell continued, saying that CryptoPunks can be dedeposited on Kraken. “And if that’s the case, you may borrow money against it.”

The value of NFTs can vary widely and token owners may not own digital collectibles worth the same as CryptoPunk. This cryptocollectible has a floor of $69.9 Ether (ETH), or $273.673, at the time this article was published.

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Powell predicts that the NFT utility will boom in 2022

Phase one was speculation. Phase two involved buying art and supporting artists. Phase three will be about functional uses for NFTs.

Kraken purchased Staked, an infrastructure platform that permits non-custodial cryptocurrency staking in order to attract investors. Kraken clients now have the ability to receive crypto yield and incentives while still owning their digital assets.

According to CoinMarketCap data Kraken was launched in 2011 and has since grown to be one of the most important cryptocurrency exchanges worldwide. It ranks among the best in terms of volume and average liquidity.

Kraken’s announcement demonstrates how NFT-backed loans have become more common as additional DeFi platforms like Nexo and Arcade offer this model. According to Cointelegraph Arcade raised $15 million in December as part of its larger effort to increase its offering and attract more investors to its NFT platform.

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