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Nexo to Launch NFT Based Credit Service, Allows Users to Borrow Cash against CryptoPunks, Bored Apes NFTs

Users will soon be able to use Bored Apes and CryptoPunks NFTs as collateral in order to borrow digital assets.

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Photo by Zamurovic / Envato / Blockwatch

Nexo, a Crypto lending company is all set to launch a Crypto credit service that will be backed by NFTs. In order to accomplish their endeavor, they’ve joined forces with Three Arrows Capital.

Clients will be able to use said NFTs as collateral, as is the case with Nexo’s existing products, and they’ll be able to borrow stablecoins, Ethereum, as well as other digital currencies.

The company’s NFT Lending Desk will start accepting Bored Ape Yacht Club and CryptoPunks NFT collections at first, as more collections are sure to be announced at a later date, presumably in the coming weeks.

CryptoPunks and Bored Apes are undoubtedly among the most popular, not to mention expensive NFT collections populating the market today. They hold a price tag of some items whose prices go up to hundreds of thousands of dollars.

An NFT serves as “a unique digital certificate, registered in a blockchain, that is used to record ownership of an asset such as an artwork or a collectible,” per The Collins English Dictionary.

“NFT” as a term was also notably Collins’ word of the year for 2021.

On the prospects of NFTs potential, Nexo co-founder Antoni Trenchev said that “NFTs’ potential reaches far beyond art, encompassing ownership, exclusive access, functions, and features.” He described their new initiative as “a definitive move towards providing financial instruments and Web 3.0-native MetaFi.”

Talking with Decrypt, Trenchev said, “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.”

In the coming months, Nexo revealed its plans to launch more investment-grade products that have a high-profit exposure to the NFT market and climate.

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