- Nexo has launched a new NFT Lending Desk service for OTC clients via a partnership with Three Arrows Capital.
- Nexo is the first crypto lender to launch a crypto credit backed by NFTs and the first institution in the blockchain space to offer art financing services for the asset class.
- The company currently accepts Bored Apes and CryptoPunks NFTs with more collections to be added continuously.
LONDON, DECEMBER 16, 2021 – Nexo, the leading regulated institution for digital assets, today announced the launch of its new NFT Lending Desk. The novel feature makes Nexo the first crypto lender to introduce crypto credit backed by NFTs and results from the company’s partnership with established crypto and NFT-focused hedge fund Three Arrows Capital.
The collaboration with Three Arrows Capital enriches Nexo’s crypto credit issuance capabilities by providing the risk hedging, valuation, and liquidation mechanisms needed for the NFT Lending Desk. This development will significantly augment Nexo’s addressable market and grow the reach of its seamless crypto credit service while bringing Three Arrows Capital additional exposure to the emerging market for NFTs. As a corollary to the launch, Three Arrows Capital is also the first NFT Lending Desk client with an NFT-collateralized crypto credit issued by Nexo.
Nexo’s NFT Lending adds new capabilities to the company’s OTC desk, addressing the needs of various types of investors. The specialized service is fully accessible to all clients and commences by supporting two acclaimed NFT collections: Bored Apes Yacht Club and CryptoPunks, with many more sets to be announced in the upcoming weeks. As with Nexo’s Instant Crypto Credit Lines, clients will be able to borrow stablecoins, ETH and other virtual currencies. In addition, clients may instruct Nexo to execute NFT purchases on their behalf by use of the crypto credit issued, which creates a potent form of art financing in the digital space that otherwise proliferates the traditional financial sphere.
“Our partnership with Three Arrows Capital is a definitive move towards providing financial instruments & Web 3.0-native MetaFi,” opined Nexo Co-founder and Managing Partner Antoni Trenchev. “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.”
“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.
Following its recent balance sheet acquisition of three Bored Apes via Christie’s and with its innovative NFT Lending, the company has now launched the first in a series of products for non-fungible tokens, blazing the trail for the up and coming banking institutions of Web 3.0 and the metaverse. In the coming months, as a part of its ongoing Nexonomics initiative, Nexo is set to release more investment-grade products, accessible, secure and high-profit exposure to the NFT market.
Nexo is the world's leading regulated digital assets institution. The company’s mission is to maximize the value and utility of cryptocurrencies by offering tax-efficient Instant Crypto Credit Lines, a high-yield Earn Crypto Interest suite, an instant Exchange service, and sophisticated trading and OTC capabilities, while providing the top-tier custodial insurance and military-grade security of the Nexo Wallet. Nexo has processed $50+ billion for 2,500,000+ users across more than 200 jurisdictions.
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