Nexo in collaboration with Three Arrows Capital has launched its first NFT lending desk. It became the first cryptocurrency lending platform to launch a crypto credit backed by NFTs. Nexo is also the first institution in the blockchain space to offer art financing services for the asset class. Three Arrows Capital is also the first NFT Lending Desk client with an NFT-collateralized crypto credit issued by Nexo.
Antoni Trenchev, Nexo’s co-founder, foresees an increase in the use cases of NFTs. He said that the platform will also boost its services. Trenchev believes an NFT can be anything and can provide so many functions. “In the future, we will be providing loans and financing people’s purchase against anything from digital real estate, to gaming items, or even limited edition Nike sneakers,” he said.
Nexo, in an official statement, said the partnership with Three Arrows Capital enriches its crypto credit issuance capabilities. Trenchev said the partnership is a definitive move towards providing financial instruments and Web 3.0-native MetaFi. “NFTs’ potential reaches far beyond art encompassing ownership, exclusive access, functions, and features,” he explained. “As we continue to discover the full scope of this asset class, services like Nexo’s lending will be in high demand to unlock NFTs’ underlying value while allowing users to retain ownership.”
Kyle Davies, Director, Three Arrows Capital, said the partnership with Nexo shows their recognition of NFTs’ promise as a financial instrument. It requires appropriate, high-quality financial tools to be fully leveraged, he said.
Nexo’s NFT Lending adds new capabilities to the company’s OTC desk. It addresses the needs of various types of investors. This specialized service is fully accessible to clients. It supports two NFT collections – Bored Apes Yacht Club and CryptoPunks. Clients will also be able to borrow stablecoins, ETH, and other cryptocurrencies.