The cryptocurrency exchange Kraken is preparing to enter the booming non-fungible token (NFT) space, aiming to attract both digital art collectors and speculative investors. Jesse Powell, founder and CEO of Kraken, revealed that the platform is developing an NFT marketplace with advanced financial features, including custody services and the ability to use NFTs as collateral for loans.
This strategic expansion positions Kraken alongside major competitors like Binance, FTX, and Coinbase, all of which have already launched or are actively building their NFT platforms. With growing mainstream interest in blockchain-based digital assets, Kraken’s move underscores a broader industry shift toward functional utility beyond mere speculation or profile picture status symbols.
Building a Next-Generation NFT Platform
Unlike many existing NFT marketplaces that focus solely on buying and selling digital collectibles, Kraken aims to integrate deeper financial infrastructure. The planned platform will offer custody services, giving users secure storage solutions for their valuable digital assets—a feature currently missing from platforms like OpenSea.
Even more notably, Kraken is working on a system to determine the liquidation value of deposited NFTs. This would allow users to borrow funds against high-value tokens such as CryptoPunks or Bored Ape Yacht Club avatars.
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“If you deposit a CryptoPunk on Kraken, we want to be able to reflect the value of that in your account,” Powell explained in a recent interview. “And if you want to borrow funds against that, we’re building the systems to make it possible.”
This approach aligns with Powell’s vision of NFTs evolving through distinct phases: first speculation, then art collection and artist support, and finally functional use cases—such as using NFTs in lending, gaming, or identity verification.
Why 2025 Is the Year NFTs Go Mainstream
Powell believes 2025 will be remembered as the year NFTs transitioned from niche digital curiosities to mainstream financial instruments. While early blockchain innovation revolved around Bitcoin and smart contracts, the idea of tokenizing unique digital items existed almost from the beginning.
“The concept for NFTs was there in crypto’s early days,” Powell said, referring to early experiments with metadata tagging on the Bitcoin blockchain. “But it took something truly viral—like NBA Top Shot—to get people talking.”
Indeed, the convergence of pop culture, social media virality, and decentralized technology has accelerated adoption. From individual creators minting digital artwork to global brands launching branded NFT collections, the ecosystem has expanded rapidly.
Retail investors who once hesitated to engage with cryptocurrency are now entering the space through NFTs—often without realizing they’re interacting with blockchain technology at all.
FAQ: Understanding Kraken’s NFT Strategy
Q: When will Kraken launch its NFT marketplace?
A: Kraken plans to enter the NFT space in early 2025, though an exact date hasn’t been announced.
Q: Will Kraken support all types of NFTs?
A: While details are still emerging, the focus appears to be on high-value, widely recognized collections such as CryptoPunks and potentially Ethereum-based ERC-721 tokens.
Q: Can I use my NFTs as collateral right away?
A: The lending functionality is still under development. It will likely roll out after the initial marketplace launch, pending risk assessment and valuation models.
Competitive Landscape and Market Position
Despite nearly doubling its user base to 8.5 million in the past year, Kraken remains significantly smaller than industry leaders. On a single day in late 2025, Binance reported around $18 billion in 24-hour spot trading volume, compared to Coinbase’s $3.7 billion and Kraken’s $1 billion.
However, Kraken’s trading volume surged by 420% year-over-year, fueled by record highs in Bitcoin and Ether prices—and explosive returns from meme coins like Shiba Inu.
Speaking of which…
How Customer Demand Shapes Listing Decisions
In November 2025, Kraken’s decision to list the Shiba Inu meme coin sent its price soaring 30% in just one day. According to Powell, the listing followed intense customer demand—even though the coin lacks groundbreaking technological innovation.
“There’s not incredibly interesting new technology there,” Powell admitted. “It’s largely community-driven. It’s basically a meme coin that has the community’s attention—and sometimes you have to just list those.”
Tokens are evaluated through a structured process:
- First, they’re placed on a shortlist based on factors like developer interest, project momentum, or user requests.
- Then, a review committee—comprising lawyers, analysts, and engineers—assesses regulatory compliance and classification across different jurisdictions.
Elon Musk’s tweets? They help too.
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“If we’re getting tons of customer requests, or Elon’s tweeting about it—we take notice,” Powell said with a smile.
The Future of Functional NFTs
Kraken’s entry into the NFT space isn’t just about catching up—it’s about redefining what these tokens can do. By integrating NFT-backed lending, secure custody, and transparent valuation systems, Kraken aims to move beyond the current paradigm of digital collectibles.
Imagine using your rare digital artwork as collateral for a real-world loan. Or staking your NFT in a decentralized finance (DeFi) protocol to earn yield. These are the kinds of applications Powell envisions in “Phase Three” of NFT adoption.
Other platforms may focus on auctions and drops, but Kraken is betting on utility.
FAQ: Comparing NFT Platforms
Q: Does OpenSea offer custody services?
A: No. OpenSea operates as a peer-to-peer marketplace without holding users’ assets—making Kraken’s custody model a key differentiator.
Q: How does Kraken’s NFT strategy differ from Coinbase?
A: While Coinbase focuses on ease of entry for mainstream users via waitlists and simple interfaces, Kraken emphasizes financial integration—positioning NFTs as tradable, usable assets within a broader crypto ecosystem.
Q: Are there risks in using NFTs as collateral?
A: Yes. Volatility, liquidity issues, and valuation uncertainty pose challenges. Kraken will need robust risk management frameworks to ensure loan-to-value ratios remain stable during market swings.
Final Thoughts: Beyond Art and Hype
The rise of NFTs has often been dismissed as a speculative bubble—a playground for wealthy tech enthusiasts showing off cartoon apes as profile pictures. But behind the headlines lies real innovation.
With Kraken’s planned launch of an NFT marketplace featuring custody and lending capabilities, the industry takes another step toward maturity. These tokens are no longer just JPEGs—they’re becoming components of a new financial architecture built on blockchain principles.
As adoption grows and use cases expand, platforms that offer both accessibility and advanced functionality will lead the next wave of growth.
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For traders, collectors, and developers alike, 2025 marks a turning point—not just for Kraken, but for the entire digital asset economy.
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