NFTs are a huge deal in 2021, and have almost become a billion-dollar business. Popular collections such as the Bored Ape Yacht Club, Cryptopunks and Meebits have been sold for hundreds of thousands to even millions of dollars each NFT. The blockchain-based lending platform Nexo launched a lending desk this week to provide liquidity to NFT owners who use NFTs as collateral.
Nexo explained that NFT owners can obtain ‘instant liquidity’ without the need to sell their NFTs. The firm currently accepts NFTs from Cryptopunks and Bored Ape Yacht Club. Nexo promises that other collections will soon be added to their accepted NFTs list. Nexo customers are able to withdraw stablecoins ethereum and other digital assets from their credit accounts.
Nexo states that you can borrow up to 20% of the worth of your BAYC and Cryptopunks, without having to sell them. The lender notes says there are no credit checks and quick loan approvals without any hassles with credit scores or inquiries. Nexo claims that the NFT lending process is a white-glove service and there will be no liquidations prior to maturity. Even if your NFT value fluctuates, you won’t get liquidated.
Because the NFT lending desk is an over-the counter (OTC) service, applicants must fill out a special form. A NFT owner would fill out the form, providing their NFTs ID number and waiting for a Nexo representative.
Nexo’s announcement concluded, “Our NFT Lending Desk, art financing functionalities, and our NFT Lending Desk are only the beginning of Nexo’s NFT/metafi journey with more investment-grade product, accessible, secure and high-profit exposure in the NFT market soon,” Nexo said.