Collateralized Loans Get Punked

A few short years ago, if you had told anyone that you were going to collateralize a loan with an NFT, they would have laughed you out of town, that is if they even knew what an NFT was. As the saying goes, times are changing. No longer are NFTs just a cool profile picture, the entire market has changed.

Now you can hold NFTs for passive income, they can represent an in-game character, early access to a game, or even a social club. Another way to make your NFT work for you is a collateralized loan, and the largest one on record just took place.

• An $8 million loan collateralized by 101 CryptoPunks was facilitated by MetaStreet on a peer-to-peer lending platform NFTfi.
• The loan has an APR of 10% & a 30-day duration.
• The identity of the borrower has not been disclosed.
• As institutional interest in NFTs builds, so will lending secured by digital collectibles.

MetaStreet is a liquidity scaling solution that received $3 million in seed funding and $11 million in initial protocol liquidity just this year. They also facilitated another enormous loan, breaking the record at the time, for $1.42 million collateralized by an Autoglyph. MetaStreet prides itself on extending the purchasing power for the entire industry.

According to MetaStreet CEO & co-founder David Choi, “NFT collectors want to free up capital more efficiently and don’t want their crypto assets to turn to virtual dust.”