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Crypto Lender Nexo Launches NFT Lending Desk, Loans up to 20% for Popular NFTs
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2021-12-17 04:12:22
Crypto Lender Nexo Launches NFT Lending Desk, Loans up to 20% for Popular NFTs
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 revealeda 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. Tags in this story BAYC, Blockchain lender, Bored Ape Yacht Club (BAYC), cryptopunks, Liquidity, Loan for NFT, loans, Maturity, Nexo, Nexo lending, Nexo service, nft, NFT backed loans, NFT lending, NFT lending desk, NFT loans, NFTs, Non-fungible Token, OTC
What do you think about Nexo launching an NFT lending desk dedicated to offering liquidity to BAYC and Cryptopunks NFT holders? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 4,900 articles for Bitcoin.com News about the disruptive protocols emerging today. NBA Legend Kevin Durant Joins Coinbase to Help Promote the Crypto Exchange’s Brand NEWS | 11 hours ago Luno CEO: "Industry Accelerated a Lot Faster This Year Than We Anticipated" NEWS | 20 hours ago
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