Kraken Exchange develops the NFT market. We plan to support NFT loans.

The Kraken cryptocurrency exchange has announced the establishment of its own NFT business where users can buy and sell a variety of JPEG images.

Kraken Exchange CEO Jesse Powell said the market will provide oversight and the exchange services have decided to create a framework for consumers to use NFTs to borrow money.

“When you deposit cryptopunk into Kraken, you want that amount reflected in your account,” Powell told Bloomberg.

“If you want to borrow money to use it as a trading product, you said you can borrow other cryptocurrencies or securities using cryptopunk as a trading product.

Powell said funding for the NFT is "the third step" in improving these projects. “The first step is to think, the second step is to buy art and support the artist, and the third step is to use NFTs to work,” he said.

2021 and boom of the NFT

2021 is an important year for non-homogeneous tokens (NFTs), and the technology has moved from the crypto niche to the mainstream, and has thus been called the Collins Dictionary Word of the Year 2021.

Following the NFT competition "EVERYDAYS: The First 5,000 Days" by digital artist Beeple de Christie's, NFT was first announced in 2021. In early March, sales topped $ 69 million, placing third in selling to a live artist.

Additionally, OpenSea and other NFT design companies have seen packaging applications such as the Bored Ape Yacht Club and CryptoPunks.

However, the Kraken entered the park a bit late. Rivals Binance and FTX announced their NFT activity this year and hope to have a stake in this activity. Coinbase products are still in development, with over a million people waiting on the waiting list, and those people are expected to be future users.

Crypto lending platform Nexo also announced the announcement of NFT lending products last week. Nexo co-founder Antoni Trenchev said: “Services like Nexo Lending will have a strong need to enable users to retain their members while being aware of the potential of NFTs.

The company added that Bored Ape Yacht Club and CryptoPunks will be the first two eligible products and will soon announce additional features they are promoting.