Home News NFT-collateralized loan platform Arcade raises $15M in funding round

NFT-collateralized loan platform Arcade raises $15M in funding round

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Pantera Capital contributed to a $15 million Series A fundraising round for Arcade, a platform that allows users to use nonfungible tokens (NFTs) as lending collateral.

Pantera, Castle Island Ventures, Franklin Templeton Blockchain Fund, Golden Tree Asset Management, Eniac Ventures, Protofund, Probably Nothing Capital, and Lemniscap are among the companies that have invested in Arcade, according to a statement released on Wednesday. Along with angel investors, the venture backed by BlockFi CEO Zac Prince and Quantstamp CEO Richard Ma. In an attempt to bridge the gap between NFT-collateralized lending and decentralised finance. The platform is also coming out of a private release. With a total loan volume of $3.3 million secured on $10 million in assets.

According to Arcade co-founder Gabe Frank, NFTs account for a sizable portion of the ever-expanding DeFi market. Which is now valued at more than $250 billion. “However, despite its massive market capitalization, NFT investors are unable to acquire liquidity on their holdings. Due to a lack of infrastructure in DeFi,” he said.

Arcade employs at least ten people in the United States. And it is now hiring a senior software engineer, a lead talent specialist, and a team coordinator, among other positions. According to Lauren Stephanian, principal at Pantera Capital, the platform’s ability to collateralize NFTs has the potential to draw participation from “institutional lenders. As well as high-net-worth individuals, DAOs, corporations holding NFTs on their balance sheets, and NFT collectors”.

Other platforms, such as ETNA Network and Lithuania-based lending platform Drops, have also established or are in the process of introducing services to facilitate loans against NFTs. Teller Finance, a lending protocol, revealed in March that certain of its users would be able to get credit. Without putting up any collateral, thanks to special NFTs.

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