Arcade, a platform that allows users to use non-fungible tokens (NFTs) as loan collateral, has raised $15 million in a Series A funding round with the participation of Pantera Capital.
In an announcement Wednesday, Arcade said Pantera, Castle Island Ventures, Franklin Templeton Blockchain Fund, Golden Tree Asset Management, Eniac Ventures, Protofund, Probably Nothing Capital and Lemniscap, as well as angel investors from BlockFi, are CEO Zac Prince and Quantstamp CEO Richard Ma. Investing in an effort to link NFT-secured lending with the decentralized finance space. The platform is also exiting a special issuance with a total loan volume of $3.3 million insured on a total of $10 million in assets.
Arcade co-founder Gabe Frank said NFTs represent a large part of the ever-growing DeFi market, which is currently worth more than $250 billion in total closed-end value. “However, the lack of infrastructure in DeFi prevents NFT holders from achieving liquidity on their holdings despite market caps,” he said.
Arcade’s LinkedIn page features at least 10 employees based in the United States, with the company currently assigned to various roles, including a senior software engineer, talent specialist, and team coordinator. Lauren Stefianian, director of Pantera Capital, said that the guarantees the platform provides for NFTs has the potential to stimulate participation from “institutional lenders, high net-worth individuals, DAOs, companies that have NFTs on their balance sheets and NFT collectors.”
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Other platforms have already launched or are in the process of launching services to facilitate loans against NFTs, including ETNA Network and Lithuanian lending platform Drops. In March, lending protocol Teller Finance announced that some of its users will be able to obtain credit without posting collateral, which can be accessed through private NFTs.