On December 16, the blockchain-based lending platform Nexo announced that the company has launched a non-fungible token (NFT) lending platform. Although the company uses tokens such as Bitcoin and Ethereum to provide crypto loans for instant funds, Nexo is providing instant liquidity to NFT holders who do not want to sell their NFTs.

Nexo will provide loans for Bored Ape and Cryptopunks NFT collateral

NFT became a major event in 2021 almost overnight and became a billion-dollar industry. Popular collectibles such as Bored Ape Yacht Club (BAYC), Cryptopunks, and Meebits have sold hundreds of thousands or even millions of dollars per NFT.This week, blockchain-based lending platform relation have disclose A loan desk dedicated to providing liquidity for NFT owners who use NFT as collateral.

On the company’s blog, Nexo explained that NFT owners can “get instant liquidity without having to sell your precious NFT.” Currently, the company is accepting NFTs from the two series of Bored Ape Yacht Club and Cryptopunks. In the future, Nexo stated that other sets will be added to the list of accepted NFTs. In terms of credit withdrawal, Nexo customers can withdraw stablecoins, Ethereum (ETH)And other digital assets.

“Without selling them, you can borrow up to 20% of the value of BAYC or Cryptopunks,” Nexo said. “No credit check [and] Get loan approvals quickly without the hassle of credit scores and queries,” the lender notesNexo stated that the NFT loan process will be a “white glove service” and “there is no liquidation before maturity. Even if your NFT value fluctuates during the loan process, you will not be liquidated.”

To see how the NFT loan desk will become an over-the-counter (OTC) service, loan applicants need to fill out a special form. Essentially, NFT owners will apply, fill out a form containing their specific NFT ID number, and then wait for a Nexo representative to contact them.

“Our NFT Lending Desk and art financing functions are just the beginning of Nexo’s NFT and metafi journey. More investment-grade products, accessible, safe, and highly profitable NFT markets will soon enter our product suite,” Nexo’s announcement concluded .

What do you think about Nexo launching an NFT lending platform specifically to provide liquidity for BAYC and Cryptopunks NFT holders? Please tell us your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the head of news at Bitcoin.com News and a fintech reporter living in Florida. Since 2011, Redman has been an active member of the cryptocurrency community. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 4,900 articles about destructive protocols emerging today for Bitcoin.com News.