Nexo announced the launch of a new NFT Lending Desk service for OTC clients– becoming the first crypto lender to introduce NFT-collateralized crypto credit and art financing services for the asset class.
The launch results from Nexo’s collaboration with the prominent crypto and NFT-focused hedge fund Three Arrows Capital.
NFT Lending Desk
Nexo leverages instant crypto loans, and the addition of NFT lending service enables the platform to address the needs of a broader variety of investors.
Its pioneering NFT-collateralized crypto credit allows clients to borrow Ethereum, stablecoins, and other cryptocurrencies.
The specialized service is available to all clients and kicks off with accepting two renowned NFT collections: Bored Apes and CryptoPunks, with more sets to be announced in the following weeks.
The new feature also allows clients to instruct Nexo to make NFT purchases on their behalf by using the issued crypto credit–introducing “a potent form of art financing in the digital space that otherwise proliferates the traditional financial sphere.”
“NFTs’ potential reaches far beyond art, encompassing ownership, exclusive access, functions, and features. 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,” Nexo Co-founder Antoni Trenchev said in a press release.
Partnership with Three Arrows Capital
“Our partnership with Three Arrows Capital is a definitive move towards providing financial instruments and Web3-native MetaFi,” said Trenchev commenting on the collaboration that bolstered Nexo’s crypto credit issuance capabilities, and enabled the lender to broaden its market reach.
Meanwhile, by leveraging risk hedging, valuation, and liquidation mechanisms needed for Nexo’s NFT Lending Desk, Three Arrows Capital gains additional exposure to the NFT market.
“We are happy to partner with Nexo and demonstrate our recognition of NFTs’ promise as a financial instrument–one that requires appropriate, high-quality financial tools to be fully leveraged. At Three Arrows Capital, we’re fuelled by and invested in such forward-facing innovation,” commented Three Arrows Capital Director Kyle Davies.
As revealed in the press release, Three Arrows Capital also counts as the first NFT Lending Desk client–with an NFT-collateralized crypto credit issued by Nexo.