The current week, an unknown collector used his 101 CryptoPunks NFTs as collateral for huge $8 million loan. Strangely, this is the biggest NFT-backed loan to date, confirming the real-life utility growth of NFTs.
This is an important day for the MetaStreet liquidity scaling solution, as this startup facilitated the biggest NFT-backed loan ever recorded. Therefore, a mysterious collector used 101 CryptoPunks NFTs with different rare items as collateral for a $8 million loan.
Actually, the loan is more than three times larger than the company’s last biggest loan of $1.42 million. The loan, completed in 2021, was secured by Autoglyph (a productive NFT designed by Larva Labs).
MetaStreet broke its record due to 101 CryptoPunks NFTs which was collateralized the current year. It is worth mentioning that this loan has a 30-day time and a 10 percent APR. To complete the process, the company joined forces with NFTfi, a dedicated peer-to-peer lending platform.
Regarding the collector, they have decided to remain unknown. Nevertheless, MetaStreet affirmed that the borrower is a known NFT whale.
As the NFT market develops, so does the use of digital assets. If NFT-backed loans appeared like a distant dream previously, the 101 CryptoPunks NFTs used as collateral prove it’s all possible.
