Arcade, a platform that allows users to use non-fungible tokens as collateral for loans, said on Wednesday it had raised $ 15 million in new funding to expand its team and platform, which is already in private beta. .
Investors participating in Series A included Pantera Capital, Castle Island Ventures, Franklin Templeton Blockchain Fund, Golden Tree Asset Management, Eniac Ventures, Protofund, Probably Nothing Capital and Lemniscap. Additionally, angel investors Zac Prince, Managing Director of BlockFi, and Richard Ma, Managing Director of Quantstamp, also joined us.
NFTs are assets on blockchains that represent the ownership of digital items such as digital works of art, documents, music, titles and others. As a market, NFTs have grown significantly in value with the average monthly sale reaching $ 3,500, according to DappRadar. The stranded value of the entire market has reached $ 250 billion, reported DeFiLlama.
“The [decentralized finance] The industry currently holds over $ 200 billion in total locked-in value, with NFTs representing a significant portion of that value, ”said Arcade co-founder Gabe Frank. “However, the lack of infrastructure in DeFi prevents NFT holders from obtaining liquidity on their holdings despite massive market caps.”
Despite being in a private version, Arcade said it had already facilitated the first $ 800,000 chain loan for a lender. The company added that it generated a total of $ 3.3 million in loans during its private beta secured against $ 10 million in assets on Arcade.
The platform’s main audience is institutional investors and high net worth collectors. The company provides independent valuation, validation and curation of NFT collections with the goal of turning otherwise unused assets into income-generating entities for these collectors and investors.
Borrowers have the option of making loan applications to set terms such as type of cryptocurrency, loan term, and percentage of interest, while lenders can make open equity loan applications for give options to borrowers.
The platform is also designed for developers to build on to build applications that use Arcade as a “primitive” DeFi. This means that decentralized applications, such as NFT marketplaces, can be designed to access Arcade’s platform to allow users of their own platforms to monetize their own NFTs by lending against them.