NFT marketplace NFTfi raises USD 5 mln in series A

Thursday 18 November 2021 13:38 CET | News

NFTfi, a marketplace for non-fungible token (NFT) collateralised loans, has announced that it has raised a USD 5 million Series A funding round.

The marketplace wants to accelerate its mission to build NFT-based financial infrastructure. The round was led by 1kx, an early-stage crypto fund specialised in scaling up decentralised token networks, and will allow NFTfi to grow its operations, marketing, and product development teams to keep up with demand. Other investors include Sound Ventures, Maven 11, Scalar Capital, Kleiner Perkins, and others.

NFTfi is a two-sided loan marketplace. It allows NFT holders to borrow liquidity against their NFT assets in the form of peer-to-peer cryptocurrency loans. NFT holders can then use this liquidity productively - for instance by taking trades in other markets - before paying back the loan and obtaining back their NFT. Lenders, on the other hand, are using NFTfi as an attractive new source of yield by lending out their capital against NFT collateral.

NFTfi currently supports 100+ leading NFT projects, including Art Blocks, Bored Ape Yacht Club, Cryptopunks, Autoglyphs, Meebits, and VeeFriends. The platform is blockchain / smart contract-based, and does not act as a middleman as known from traditional loan platforms, but instead directly (peer-to-peer) connects lenders and borrowers, who negotiate loan terms between themselves.

Once these terms are agreed upon, the borrower locks his/her NFT into a trustless ‘escrow’ smart contract (which means that no one, including the NFTfi team, has access to it). Once the loan (plus interest) is repaid, the NFT automatically returns to the borrower's wallet. If the borrower defaults on the loan, the lender receives the NFT.

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Keywords: NFT, cryptocurrency, digital assets, crypto asset, funding
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies