Nexo cooperates with Three Arrows Capital to launch NFT lending and art financing services

Encrypted lending and trading platform Nexo and NFT hedge fund Three Arrows Capital have launched NFT Lending Desk. The new loan desk caters to customers in over-the-counter or over-the-counter transactions to provide encrypted credit backed by NFT. Nexo is one of the first cryptocurrency lenders to allow customers to borrow stablecoins, ETH, and other cryptocurrencies using certain NFTs as collateral.

The company said that in its initial iteration, the service will accept Bored Ape Yacht Club and CryptoPunks NFT, and there will be more series in the future. Customers can also execute further NFT purchases by using borrowed funds, using the issued credit line as a means of financing artworks.

In a statement shared with Cointelegraph, Nexo co-founder and managing partner Antoni Trenchev said:

“Our cooperation with Three Arrow Capital is a decisive move to provide financial tools and Web 3.0 native MetaFi. As we continue to discover the full scope of this asset class, the demand for services such as Nexo loans will be high to unlock the potential of NFT Value, while allowing users to retain ownership.”

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Through cooperation with Three Arrows Capital, Nexo expressed the hope to expand its existing crypto credit issuance services by providing risk hedging, valuation and clearing mechanisms for NFT Lending Desk. In addition, Three Arrow Capital became the first NFT Lending Desk customer to own the NFT secured crypto credit issued by Nexo.

Kyle Davis, director of Three Arrows Capital, added that they “are delighted to work with Nexo and show our commitment to recognize NFT as a financial instrument-a financial instrument that requires appropriate, high-quality financial instruments to be fully utilized. .”

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According to the company, in the next few months, Nexo said it plans to increase the supply of its investment-grade products, as well as the accessibility and security of the NFT market.

As the lending market supported by NFTs grows and the utility of NFTs increases, other lending platforms, such as NFTfi, ETNA network And Drops Loans also provide similar services to Nexo.