The cryptocurrency lending platform Nexo announced the launch of a new non-fungible token lending desk in collaboration with the hedge fund Three Arrows Capital.
Nexo Unveils NFT Lending Desk
According to a Thursday press release shared with CryptoPotato, the partnership with Three Arrows Capital will boost Nexo’s crypto credit issuance capabilities with the needed risk hedging, capital injection, and liquidation mechanisms for the new NFT Lending Desk.
The new service will add several additional capabilities to Nexo’s over-the-counter (OTC) desk to meet the needs of its user base.
Clients using the NFT Lending Desk will be able to borrow stablecoins, ETH, and other crypto assets. They can also authorize Nexo to execute NFT purchases on their behalf using the crypto credit issued.
The lending desk is fully accessible to all clients. It currently supports two popular NFT collections, Bored Apes Yacht Club and CryptoPunks, with more to be added later.
Speaking on the development, Nexo’s co-founder and managing partner, Antoni Trenchev, said:
“Our partnership with Three Arrows Capital is a definitive move towards providing financial instruments & Web 3.0-native MetaFi. 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.”
First of its Kind
Nexo is the first blockchain-based lender to launch crypto credit backed by NFTs, and Three Arrows Capital is the first client for Nexo’s NFT Lending Desk.
The new feature will expand Nexo’s addressable market and grow the reach of its seamless crypto credit service while also increasing Three Arrows Capital’s exposure to the rapidly growing NFTs market.
Kyle Davies, Director at Three Arrows Capital, commented,
“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.”
More Products Coming Soon
Nexo also revealed that it will launch more investment-grade products, accessible, secure, and high-profit exposure to the NFT market in the coming months as part of its ongoing Nexonomics initiative.
Earlier this month, Nexo announced a new partnership with Fidelity Digital Assets to expand institutional access to crypto.