Innovative NFT-based marketplace NFTfi has secured $5 million in a funding round supported by day one investor 1kx and attracted Ashton Kutcher’s Sound Ventures VC firm. Other participants like Reciprocal Ventures and Scalar Capital put the NFT collateralised loans platform in good company with other successful start-ups which also received similar backing.
NFTfi allows users to secure loans against non-fungible tokens, or to offer loans on NFT assets
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The South African start-up was founded by token engineer and smart contract developer Stephen Young in 2020. It grew from a friendly exchange between a group using their NFTs to secure loans among themselves to a vibrant marketplace that is incorporated in the British Virgin Islands.
Qualifying NFTs are restricted to the ERC-721 token and payments are made in ETH. When a user secures a loan, the token is locked in a smart contract and once the repayment is made the asset is transferred back. Should the borrower miss the due date, the asset is transferred to the lender.
NFTfi represents an exciting branch of decentralised finance products that is leveraging blockchain technology to unlock meaningful value in the digital collector and artist economy. This funding will allow the company to build out NFT-based financial infrastructure and bring new products to market.
Read more: NFT for digital artwork sells for $69 million
Featured image supplied by NFTfi
