Arcade, a platform that allows users to utilize nonfungible tokens (NFTs) as loan collateral, has raised $15 million in a Series A funding round with participation from Pantera Capital.
In a Wednesday announcement, Arcade said Pantera, Castle Island Ventures, Franklin Templeton Blockchain Fund, Golden Tree Asset Management, Eniac Ventures, Protofund, Probably Nothing Capital and Lemniscap in wing to sweetie-pie investors BlockFi CEO Zac Prince and Quantstamp CEO Richard Ma were overdue the investment in an effort to connect NFT-collateralized lending with the decentralized finance space. The platform is moreover coming out of a private release with $3.3 million in total loan volume secured on a total of $10 million in assets.
Arcade co-founder Gabe Frank said NFTs worth for a significant portion of the ever-growing DeFi market, which is currently worth over $250 billion in terms of total value locked. “However, the lack of infrastructure in DeFi prevents NFT holders from achieving liquidity on their holdings despite massive market caps,” he said.
Arcade’s LinkedIn page shows at least 10 U.S.-based employees, with the visitor currently hiring for various roles, including a senior software engineer, lead talent specialist and team coordinator. Lauren Stephanian, principal at Pantera Capital, said the platform’s collateralization of NFTs had the potential to incentivize participation from “institutional lenders, high-net-worth individuals, DAOs, companies with NFTs on their wastefulness sheets and NFT collectors.”
Other platforms have once launched or are in the process of launching services to facilitate loans versus NFTs, including ETNA Network and Lithuania-based lending platform Drops. In March, lending protocol Teller Finance spoken that some of its users would be worldly-wise to obtain credit without posting collateral, wieldy through special NFTs.