Nexo partners with Three Arrows Capital to launch NFT lending & art financing service

Nexo, the crypto borrowing and change platform, has launched an NFT Lending Desk in partnership with NFT hedge fund Three Arrows Capital. The brand new lending desk caters to over-the-counter, or OTC, purchasers to supply crypto credit score backed by NFTs. Nexo is without doubt one of the first crypto lenders to permit prospects to borrow stablecoins, ETH, and different cryptocurrencies utilizing sure NFTs as collateral. 

The corporate acknowledged that in its preliminary iteration, the service will settle for Bored Ape Yacht Membership and CryptoPunks NFTs, with extra collections on the best way. Purchasers also can use issued strains of credit score as a way of artwork financing by executing additional NFT purchases with t borrowed funds.

In an announcement shared with Cointelegraph, Nexo Cofounder and Managing Accomplice Antoni Trenchev mentioned:

“Our partnership with Three Arrows Capital is a definitive transfer in direction of offering monetary devices & Net 3.0-native MetaFi. As we proceed to find the total scope of this asset class, companies like Nexo’s lending shall be in excessive demand to unlock NFTs’ underlying worth whereas permitting customers to retain possession.”

Associated: Constancy and Nexo are coming into institutional lending market

By collaborating with Three Arrows Capital, Nexo mentioned it hopes to develop its current crypto credit score issuance companies by offering the NFT Lending Desk with threat hedging, valuation and liquidation mechanisms. Moreover, Three Arrows Capital grew to become the primary NFT Lending Desk shopper with an NFT-collateralized crypto credit score issued by Nexo.

Three Arrows Capital Director Kyle Davies added that they’re “pleased to associate with Nexo and display our recognition of NFTs’ promise as a monetary instrument – one which requires applicable, high-quality monetary instruments to be totally leveraged.”

Associated: Three Arrows buys 156K ETH within the weeks after CEO ‘deserted ETH’

Within the coming months, Nexo mentioned it plans to extend its choices of investment-grade merchandise and accessible and safe publicity to the NFT market, in line with the corporate.

Because the NFT-backed lending market grows and NFT utility will increase, different lending platforms akin to NFTfi, ETNA Community and Drops Loans are additionally providing comparable companies to Nexo.