Home - NFT - Nexo & Three Arrows Launch NFT Service


December 18, 2021

Nexo & Three Arrows Launch NFT Service

Three Arrows Capital and Nexo have partnered together and released a service. Nexo is a platform for exchanging and borrowing cryptocurrency. Three Arrows Capital is a hedge fund. The service that these two companies have launched is a lending desk for nonfungible tokens. The lending desk provides services for clients over the counter. It allows its clients to give cryptocurrency credit that is supported by nonfungible tokens. A number of service providers exist that offer services where clients can borrow cryptocurrency. Nexo is one of the first that offer this service. So far, it allows users the opportunity to borrow Ether, stablecoins, and a number of other cryptocurrencies. Users can even utilize some nonfungible tokens as collateral for their loans.

Collateral Options

At first, the firm stated that people could use CryptoPunk NFTs and Bored Ape Yacht club nonfungible tokens as collateral. They have also stated that they will accept more collections in the future. Users can utilize given lines of credit as a way of financing art. They have to first process more nonfungible token purchases with the monies that they borrow.

Statement from Nexo about NFT Lending

The Managing Partner and co-founder of Nexo, Antoni Trenchev gave some statements to Cointelegraph regarding this development. Trenchev stated that their partnering with the hedge fund was a clear move to offering financial services and native Web 3.0 MetaFi. The co-founder of Nexo added that they proceed to unearth the total capabilities of this asset class. He thereafter stated that providers like Nexo’s lending will tap into nonfungible tokens underlying value as users keep ownership of them. Trenchev stated that for that reason, their lending service will be in great demand.

Also Read:  Bitcoin Ethereum Dogecoin Dominating Crypto Ownership

The goal of Collaboration on NFT Lending

Nexo stated that their intention for partnering with Three Arrow Capital was to make expansion possible. The expansion is of the existing issuing of cryptocurrency credit. This was orchestrated by offering the nonfungible token lending desk with hedging of risks, means for liquidation, and valuation mechanisms. This development has also gone down in history by making Three Arrow Capital the very first lending desk client of nonfungible tokens with the acceptance of NFTs as collateral for Nexo cryptocurrency credit.

Comment by Three Capital on NFT Lending Service

Kyle Davies, the Director of Three Arrows Capital stated that their company was satisfied with their partnership with Nexo. Davies added that this partnership showed that they recognized the promise of nonfungible tokens as an instrument in the financial sector. He added that this instrument was one that was fully leveraged, of high quality, and appropriate for user needs.

The Future of the NFT Lending Service

There are plans for Nexo to grow its catalog of services in the next months ahead. They intend on making these services investment-grade with accessibility and security being paramount to the users of the nonfungible token market. The company made these statements.

The market continues to grow for finance solutions that accept nonfungible tokens as collateral. So do the number of companies stepping into the space to offer their services. These companies that offer services much like Nexo include ETNA Network, NFTfi, and Drops Loans.

About Nexo

Nexo is a firm that has the goal of addressing inefficiencies in the markets for lending. They intend on accomplishing this by designing convenient, innovative, and sustainable solutions whilst making use of blockchain technology. At present they are working on establishing a novel digital finance system.

Also Read:  Some Crypto ads Banned in the UK

Three Arrows Capital

Three Arrows Capital launched by its founders back in 2012. It is a registered hedge fund that directs its services towards offering risk-adjusted returns to its client base. The founders of Three Arrows Capital are Kyle Davies and Su Zhu.