On December 16th, Nexo tweeted an announcement regarding their new financing option which is based on borrowing stablecoins, Bitcoin, Ethereum by using NFTs as collateral.
Currently, eligible NFTs on Nexo, which offers financing services (specifically loans) via crypto, are limited to BAYC and CryptoPunk collections (that were recently minted during the Adidas Originals "Into the Metaverse" project), but more assets will be accepted very soon.
The company’s co-founder Antoni Trenchev stated that their partnership with Three Arrows Capital will excel in the development of financing options via NFTs through decentralized apps on Web3, which will make Nexos' services "in high demand to unlock NFTs’ underlying value while allowing users to retain ownership."
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In fact, this type of decentralized financing was achieved thanks to Three Arrows Capital that helped implement validation, liquidation mechanisms, and a risk hedging system.
The Director of Three Arrows Capital Kyle Davies called this NFT backed service a "financial instrument that requires appropriate, high-quality financial tools to be fully leveraged", and is eager to proceed with its "forward-facing innovation".
While Nexos' Landing Desk is still in its early stages, plans for releasing digital products that would draw investments, and displaying NFT-driven markets are currently in motion.
