Nexus, the cryptocurrency exchange and loan platform, has launched an NFT loan facility in association with hedge fund NFT Three Arrows Capital. The new loan service caters to over-the-counter or OTC clients to offer NFT-backed crypto credits. Nexo is one of the first cryptocurrency lenders to allow clients to borrow stablecoins, ETH, and other cryptocurrencies using certain NFTs as collateral.
The company stated that in its initial iteration, the service will accept NFT from Bored Ape Yacht Club and CryptoPunks, with more collections on the way.. Clients can also use issued credit lines as a means of financing artwork by executing new purchases of NFT with borrowed funds.
In a statement shared with Cointelegraph, Nexo co-founder and managing partner Antoni Trenchev said:
“Our partnership with Three Arrows Capital is a definite step toward providing Web 3.0 native MetaFi and financial instruments. As we continue to discover the full scope of this asset class, services like Nexo loans will be in high demand to unlock the underlying value of NFTs and allow users to retain ownership. “
In collaborating with Three Arrows Capital, Nexo said it hopes to expand its existing crypto credit issuance services by providing NFT Lending Desk with risk hedging, valuation and settlement mechanisms.. Additionally, Three Arrows Capital became the first NFT Lending Desk client with a crypto credit guaranteed by NFT issued by Nexo.
Three Arrows Capital Director Kyle Davies added that they are “happy to partner with Nexo and demonstrate our recognition of the promise of NFTs as a financial instrument, one that requires appropriate, high-quality financial tools to be fully leveraged.”
In the next few months, Nexo said it plans to increase its offering of investment grade products and an accessible and safe exposure to the NFT market., according to the company.
As the market for NFT-backed loans grows and the utility of NFT increases, other lending platforms such as NFTfi, ETNA Network and Drops Loans also offer services similar to Nexo.
Keep reading:
–
