On December 16, the blockchain-based lending platform Nexo announced the firm has launched a non-fungible token (NFT) lending desk. While the company offered crypto-backed loans using tokens like bitcoin and ethereum for instant funds, Nexo is offering instant liquidity to NFT holders that don’t want to sell their NFTs.
Nexo to Offer Loans for Bored Ape and Cryptopunks NFT Collateral
NFTs have become a big deal in 2021 and a billion-dollar industry almost overnight. Popular collections like the Bored Ape Yacht Club (BAYC), Cryptopunks, and Meebits have sold for hundreds of thousands and even millions of dollars per NFT. This week, the blockchain-based lending platform Nexo has revealed a lending desk dedicated to offering liquidity to NFT owners who use their NFTs as collateral.
On the company’s blog, Nexo explains that NFT owners can get “instant liquidity without having to sell your precious NFTs.” Right now the firm is accepting NFTs from two collections Bored Ape Yacht Club and Cryptopunks. In the future, Nexo says other collections will be added to the list of accepted NFTs. In terms of credit withdrawals, Nexo customers can withdraw stablecoins, ethereum (ETH), and other digital assets.
“Borrow up to 20% of the value of your BAYC or Cryptopunks without selling them,” Nexo says. “No Credit Checks [and] prompt loan approval without the hassle of credit scores and inquiries,” the lender notes. Nexo says the NFT lending process will be a “white-glove service,” and there are “no liquidations before maturity, even if the value of your NFT fluctuates during the course of the loan, you won’t get liquidated.”
Seeing how the NFT lending desk will be an over-the-counter (OTC) service, loan applicants need to fill out a specialized form. Essentially, an NFT owner would apply, fill out a form with their specific NFTs ID number, and then wait for a Nexo representative to contact them.
“Our NFT Lending Desk and art financing functionalities are just the beginning of Nexo’s NFT and metafi journey, with more investment-grade products, accessible, secure, and high-profit exposure to the NFT market coming to our product suite soon,” Nexo’s announcement concludes.
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