Key Takeaways
- Nexo, in partnership with Three Arrows Capital, has unveiled an “NFT Lending Desk”.
- In Nexo’s NFT Lending Desk, top NFTs like Bored Apes and CryptoPunks can be used as collateral.
- Three Arrows Capital will offer expertise in hedging, valuation, as well as liquidation for the service.
Nexo has introduced a lending product using CryptoPunks and Bored Apes as collateral.
Pawn Top NFTs To Borrow Crypto Assets
The Nexo platform became the first regulated crypto lender to offer NFT lending. In partnership with venture capital firm Three Arrows Capital, NFT launched a new service called “NFT Lending Desk”.
As part of the launch, Nexo will allow its OTC clients to take out loans by pledging non-fungible tokens as collateral. As of now, Nexo’s NFT Lending Desk accepts two of the top NFT collections – Bored Ape Yacht Club and CryptoPunks; more collections will be added in the future.
Nexo announced in a press release that clients could borrow stablecoins, ETH, and other crypto assets. According to Nexo, the centralized crypto lending platform has processed more than $50 billion from millions of users worldwide.
In his statement about Nexo’s partnership with Three Arrows Capital, Antoni Trenchev described its partnership as a “definitive move towards providing financial instruments & a Web 3.0-based MetaFi.” Further, Trenchev said:
As we continue to discover the full scope of this asset class, services like Nexo’s lending will be in high demand to unlock NFTs’ underlying value while allowing users to retain ownership.
Antoni Trenchev
For the NFT Lending Desk, Three Arrows Capital will provide expertise on hedging, valuation, and creating liquidation mechanisms. In response to the Nexo partnership, Three Arrows director Kyle Davies said:
We are happy to partner with Nexo and demonstrate our recognition of NFTs’ promise as a financial instrument–one that requires appropriate, high-quality financial tools to be fully leveraged.
Kyle Davies
The launch comes at a time when the NFT market is booming after garnering media attention and celebrity endorsements. The hype around blockchain-based virtual lands, otherwise known as “metaverse”, has further fueled the NFT market.
Originally published here
