- Crypto lender, Nexo has partnered with Three Arrows Capital to launch an NFT-backed lending service.
- The company also introduced an art financing service announced on Thursday.
- Nexo will initially accept Bored Apes and CryptoPunks NFTs and will add more items continuously.
Leading cryptocurrency lender Nexo has partnered with crypto hedge fund Three Arrows Capital to pioneer an NFT-backed lending service. Nexo said on Thursday it will also offer an art financing service to complement NFT lending.
The platform will initially accept Bored Apes and Cryptopunks NFTs, before adding more items continuously.
Nexo will also be the first organization to provide art financing services in the blockchain industry.
Three Arrows Capital is a Singaporean hedge fund focusing on the cryptocurrency industry in line with its vision of offering superior risk-adjusted returns. The firm was founded in 2012, by Su Zhu and Kyle Davies.
The new lending service dubbed the NFT Lending Desk will benefit from Nexo’s partnership with the hedge fund by gaining access to risk hedging, valuation principles, and liquidation mechanism.
In addition, the NFT Lending desk expands Nexo’s rapidly growing addressable market, with the platform now gaining access to the metaverse. On the other hand, Three Arrows Capital will augment its portfolio of investments by adding the emerging world of NFTs.
The NFT Lending Desk will be accessible to all clients and kicks off by supporting two of the most popular NFTs collections, Bored Apes Yacht Club and CryptoPunks. Nexo said many more items will be announced within weeks.
In addition to being able to borrow through all other crypto credit lines, clients will be able to ask Nexo to execute NFT transactions on their behalf using the crypto credit issued, thereby enabling the platform to provide a form of art financing service, completely re-inventing banking.
The company said its partnership with Three Arrows Capital will support its integration of Web3 and MetaFi (metaverse financing).
In a statement sent to media houses, Nexo Co-founder and Managing Partner Antoni Trenchev said, “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.”
On the other hand, Kyle Davies, Director at Three Arrows Capital opined, “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.”
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