Kraken Institutional is moving deeper into one of the messier corners of digital assets: how to value crypto holdings that do not trade like Bitcoin, Ethereum, or the major liquid tokens.

The exchange’s institutional arm has partnered with Upshot to bring valuation tools into its stack, with the focus on NFT and other illiquid digital holdings. That may sound narrow at first glance, especially in a market that is still mostly judged by spot prices and daily volume, but it touches a real problem for funds, lenders, custodians, and professional traders.

A liquid token has a visible market price. An NFT collection, tokenized asset, or thinly traded holding often does not. That makes everything harder: reporting, collateral, custody,…