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Lending platform Nexo partners with Three Arrows Capital to launch NFT lending services, offering two collateralized projects for loans.

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Lending platform Nexo partners with Three Arrows Capital to launch NFT lending services, offering two collateralized projects for loans.

The cryptocurrency lending and trading platform Nexo announced a collaboration with the venture capital firm Three Arrows Capital on the 16th to launch NFT lending and financing services. Currently, the NFT projects available for lending are only Bored Ape Yacht Club and CryptoPunks, with more to be added in the future.

Nexo NFT Lending Feature

NEXO's financing service falls under over-the-counter trading services. To use this service, one must first go to the official website and fill out an application form to prove ownership of these NFTs. After verification, the platform will assign a dedicated customer manager to provide service assistance.

NFT Lending Rates and Risks

By lending out NFTs on Nexo, users can gain additional liquidity. Here are the details:

  • Projects: Currently, only Bored Ape Yacht Club (BAYC) and CryptoPunks are accepted. Other lending projects will be announced in the coming weeks.
  • Currencies: Various stablecoins and digital currencies like ETH are available for withdrawals.
  • Interest Rates: The borrowing interest rates range from 12% to 15%, depending on market conditions and NFT value.
  • Loan-to-Value Ratio: Borrow up to 10%-20% of the NFT value, and the NFT will be returned immediately upon repayment.

Furthermore, loans can be obtained without a credit check, and even if the NFT value fluctuates rapidly during the borrowing process, there will be no liquidation. This provides lenders with a high degree of financial flexibility.

Art Financing in the Web3 World

Art financing has been present in traditional finance for a long time, and Nexo is now bringing it to the NFT space, offering more possibilities for NFT utilization. However, the NFT market value and trading volume are highly volatile, and whether it can serve as stable collateral remains to be verified. With Nexo currently offering only two NFT projects as service objects and very low loan limits, it seems that this service is still in the experimental and promotional stage. The future development is highly anticipated.