Quick take:
- Safe has collaborated with NFT NFTfi to develop an NFT rights management wallet.
- The new product is created with the intention of maximising the value of digital assets to NFT owners.
- Safe recently raised $100 million, subsequently rebranding from Gnosis Safe to focus on building its digital asset ownership ecosystem.
Safe has teamed up with NFTfi to develop a new product that will enhance the value of digital assets to owners. The digital asset management company on Wednesday said it is creating an NFT rights management wallet in collaboration with the NFT lending platform.
Originally operating under the trading name Gnosis Safe, the company spun off and rebranded to Safe to focus on creating products that enhance the value of digital asset ownership. The rebranding was accompanied by a $100 million fundraising announced last month.
Safe wants to make holding NFTs more important — beyond the purposes of gaining access to token-gated communities, being drafted for NFTs and token airdrops, or simply for display.
In NFT-backed lending, holders of NFTs used as collateral lose physical ownership until the day they repay the debt. During this period, the NFT is stored in an escrow third-party wallet, denying the owner access to their asset.
Safe wants to help NFT owners retain physical ownership of their digital assets used to secure lines of credit.
The two companies are creating a solution that will allow Safe Ethereum wallet holders to distribute “certain rights and permissions associated with an NFT to other Ethereum addresses.”
Safe also revealed that it has invested in NFTfi an undisclosed amount that will become part of the Safe product suite.
Commenting on the new product, NFTfi CEO, Stephen Young said that the NFTfi NFT wallet is not created to focus on use cases, but rather as a disruptive tool that could usher in a new age in NFT utility, thus unlocking the optimal value of the industry.
But for now, Young sees the wallet as a solution that could help lower the costs associated with NFT lending, whilst also making it more convenient for NFT owners. NFTfi’s goal is to become the underlying settlement layer for NFT financial transactions.
“It pursues a platform strategy in which external developers and teams can build agreement types, such as rentals or options, and use NFTfi’s existing distribution and liquidity to build profitable services on top” Young said.
According to Lukas Schor, the co-Founder of Safe, his organisation made the investment in NFTfi before the recent spin-off that was accompanied by the $100 million fundraising.
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