The blockchain-based lending platform Nexo revealed that it has opened a new non-fungible token lending desk on December 16. 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 offers loans to Cryptopunks NFT and Bored Apes
NFTs are a huge deal and have been a multi-billion dollar industry since 2021. The Bored Ape Yacht Club, Cryptopunks and Meebits are all popular collections that have been sold for thousands to even millions of dollars each NFT. The blockchain-based lending platform Nexo was launched this week. revealedThis lending desk is dedicated to providing liquidity for NFT owners that use 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. Nexo promises that other collections would be accepted in the future. Nexo customers have the option to withdraw stablecoins or ethereum from their accounts.
“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.”
Because the NFT lending desk is an OTC service, applicants must fill out a special form. An NFT owner would fill out the form, providing their NFT ID, then wait for Nexo 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.
How do you feel about Nexo opening an NFT lending office to offer liquidity to Cryptopunks and BAYC NFT holders? Please comment below to let us know your thoughts on this topic.
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