On December 16, blockchain-based lending platform Nexo announced that the company had launched a non-fungible token (NFT) lending desk. While the company offered crypto-backed loans with tokens like Bitcoin and Ethereum for instant funds, Nexo is offering instant liquidity to NFT holders who don’t want to sell their NFTs.
Nexo offers loans for Bored Ape and Cryptopunks NFT collateral
NFTs will be a big deal in 2021, becoming 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 providing 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 valuable NFTs.” Currently, the company accepts NFTs from two collections, Bored Ape Yacht Club and Cryptopunks. In the future, according to Nexo, more collections will be added to the list of accepted NFTs. With regard to 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,” says Nexo. “No credit check [and] quick loan approval without the hassle of credit checks and inquiries, ”says the lender Remarks. Nexo says the NFT lending process will be a “white glove service” and “there will be no pre-maturity liquidations, even if the value of your NFT fluctuates over the life of the loan, you will not be liquidated”.
Since the NFT credit counter will be an over the counter (OTC) service, credit applicants will need to fill out a special 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 arts finance functions are just the beginning of Nexo’s NFT and Metafi journey, with more investment grade products, an accessible, secure and profitable exposure to the NFT market coming soon to our suite of products,” announces Nexo. closes.
What do you think of Nexo launching an NFT lending desk dedicated to providing liquidity for BAYC and Cryptopunks NFT holders? Let us know what you think on this matter in the comments below.
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Source: Crypto News Austria