Nexo Crypto lender Grants $3.3M NFT Loan

The cryptocurrency & blockchain space continues to expand with NFTs by not only being a big part of the social identity of some people but there is also a growing interest in getting loans from such high net worth assets as well

Having companies come together from different parts of finance to create this process with a loan from Nexo a crypto lender totaling around $3.3 million (approx. 1200 ETH), using two rare Zombie Cryptopunks as collateral with an annual interest rate of 21%.

The transaction happened between multiple parties including Nexo, an NFT lending platform called Arcade, and an investment manager from Meta4Capital.

To qualify for instant liquidity of between 10 and 20% of the value of your Bored Ape Yacht Club or CryptoPunk NFT, which must exceed $500K, without selling the NFT. The application process may be longer if the NFT doesn’t belong to the CryptoPunks or Bored Ape Yacht Club collections. The liquidity can be obtained in ETH or stablecoins, and should the value of the NFT vary while funds have been borrowed, they won’t be liquidated. The annualized borrowing rates range from 12% to 15% but depend on market conditions and the NFT being offered, not on your credit history.

This is just the beginning of loans & lending within the space now that there are bigger players trading, VCs, publicly traded companies, and financial firms getting involved depending on which NFT projects solidify themselves in the space next as well.