Key points to remember
- Nexo unveiled an âNFT Lending Deskâ in partnership with Three Arrows Capital.
- Nexo’s NFT loan office accepts top NFTs as collateral, including Bored Apes and CryptoPunks.
- Three Arrows Capital will provide hedging, valuation and liquidation expertise for the service.
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Nexo has launched a loan product that uses CryptoPunks and Bored Apes as the underlying collateral.
Crypto Lender will accept high value NFTs
Nexo became the first regulated crypto lending platform to offer an NFT loan facility. The company unveiled a new service called “NFT Lending Desk” in partnership with venture capital firm Three Arrows Capital.
With the launch, Nexo will allow its OTC clients to contract loans by placing their non-fungible tokens as collateral. Nexo’s NFT Loan Desk currently accepts top NFT collections – Bored Ape Yacht Club and CryptoPunks, with more to be added in the future.
In a press release, Nexo said customers can borrow stablecoins, ETH and other crypto assets using supported NFTs. As a centralized crypto lending platform, Nexo claims to have processed over $ 50 billion from millions of users around the world.
Nexo co-founder and managing partner Antoni Trenchev said his partnership with Three Arrows Capital on its NFT loan service “is a definite step towards providing financial instruments and native MetaFi Web 3.0.” Speaking in more detail about loans guaranteed by the NFT, Trenchev added:
âAs we continue to uncover the full breadth of this asset class, services such as Nexo loans will be in high demand to unlock the underlying value of NFTs while allowing users to retain ownership. “
Meanwhile, Three Arrows Capital will bring its expertise in hedging, valuation and creation of liquidation mechanisms for the NFT Lending Desk. Commenting on the partnership with Nexo, Three Arrows Director Kyle Davies said:
âWe are pleased to partner with Nexo and demonstrate our recognition of the promise of NFTs as a financial instrument, which requires appropriate and high quality financial tools to be fully exploited. “
The launch comes at a time when the NFT market has exploded after garnering media attention and celebrity interest. The hype around blockchain-based virtual lands, also known as ‘metaverse’, has further energized the NFT niche.
Disclosure: At the time of writing, the author of this article owned ETH and other cryptocurrencies.
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