Crypto lender Nexo has issued a $3.3m (£2.64m) NFT-backed loan, secured against two rare CryptoPunks Zombies.
It is believed to be one of the largest loans backed by NFTs in crypto history.
The 60-day loan was valued at 1,200 Ether, and carries an annualised interest rate of 21 per cent.
The “complex” deal was structured by Nexo, issued on peer-to-peer NFT marketplace Arcade, and hedged through investment manager Meta4 Capital.
“With this multi-lateral partnership, we are demonstrating the merge between traditional, decentralized and crypto finance,” said Kiril Nikolov, head of DeFi strategy at Nexo.
The NFT lending market has been going from strength to strength in recent months.
Earlier this year, a loan backed by CryptoPunks art worth more than $8m was floated on the NFTfi platform, but it was pulled at the last minute.
And in April, P2P NFT lending marketplace Flowty raised $4.5m to grow its platform and add new features.
“Like many collectors, people became attached to their NFTs, they become part of the persona, particularly online and in Web 3,” added Brandon Buchanan, founder and managing partner at Meta4 Capital.
“Many folks view NFTs as a store of value or a way to accrue Ether.”