The Collateral Marketplace is the first blockchain-powered marketplace for trading tokens that are backed by physical collateral such as stocks, bonds or art. With a team of experienced entrepreneurs behind them and $5M in Series A funding with plans to raise up to $20M additional investment over 2 years, the Collateral Marketplaces has secured its future ahead of this hot new trend.
NFTfi, a marketplace for NFT collaterized loans, has announced a $5 million Series A investment round. 1kx, an early-stage firm focused to assisting creators in bootstrapping token networks, led the investment round. Maven11Capital, Animoca Brands, Collab Currency, and Robi Air are among the other investors, as are angel investors Sandy Heller, jimmyeth, and George Farha.
NFTfi intends to utilize the funds to expand its NFT-based financial infrastructure and launch new NFT-focused financial products. Stephen Young, a South African smart contract developer, started the firm in February 2020. The site intends to assist users in obtaining liquidity without having to sell their NFTs.
On the NFTfi platform, there are two options: lend and borrow. Users may borrow money using their NFT assets as security, or lend money to other users using their NFTs. If you put up an NFT as collateral and take a loan, the ETH is transferred from the lender’s account to your account, and your NFT is locked in the NFTfi smart contract. The NFT will be returned to you after you repay the loan; however, if it is not repaid before the due date, the NFT will be transferred to the lender.
Lenders may make good money and, of course, retain the NFTs if the borrower defaults on the loan. Borrowers should do comprehensive research and be confident in the assets they are lending on. Here’s where you can learn more about how the process works.
“Our major goal is to do for NFTs what DeFi achieved for bitcoins. When DeFi was introduced to cryptocurrencies, the market saw an explosion of activity and liquidity. And, more importantly, we want to serve as a catalyst for the NFT market, releasing some of the wealth in these NFTs so that it can be put back into the NFT community and market to help grow the area further,” Young said.
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