On December 16, blockchain-based lending platform Nexo announced that the company had launched a non-fungible token (NFT) lending office. While the company offered cryptocurrency backed loans using tokens such as bitcoin and ethereum for instant funds, Nexo offers instant liquidity to NFT holders who do not wish to sell their NFTs.
Nexo to offer loans for NFT Bored Ape and Cryptopunks collateral
NFTs became 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 through NFT. This week, the Nexo blockchain-based lending platform has revealed a loan office 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 cash without having to sell your precious NFTs.” At present, the company accepts NFTs from two collections Bored Ape Yacht Club and Cryptopunks. Going forward, Nexo says more collections will be added to the list of accepted NFTs. In terms of credit withdrawals, Nexo customers can withdraw Stable Coins, Ethereum (ETH), and other digital assets.
“Borrow up to 20% of the value of your BAYC or Cryptopunks without selling them,” explains Nexo. “No credit check [and] fast loan approval without the hassle of credit scores and inquiries, ”notes the lender. Nexo says that the NFT loan process will be a “white glove service” and that there is “no liquidation before maturity, even if the value of your NFT fluctuates during the loan, you will not be liquidated. “.
Seeing how the NFT loan office will be an over-the-counter (OTC) service, loan seekers need to complete a specialized form. Essentially, an NFT owner would make a request, fill out a form with their specific NFT ID number, and then wait for a Nexo representative to contact them.
“Our NFT loan office and art finance features are just the start of Nexo’s NFT and metafi adventure, with more investment grade products, accessible, secure and high-profit exposure to the NFT market. which will soon arrive in our suite of products ”, Nexo announces concludes.
What do you think of Nexo’s launch of an NFT loan office dedicated to providing liquidity to holders of BAYC and NFT Cryptopunks? Let us know what you think of this topic in the comments section below.
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