{"id":387607,"date":"2021-12-30T17:00:00","date_gmt":"2021-12-30T14:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/genesis-issues-6m-nft-backed-loan-to-meta4-capital\/"},"modified":"2021-12-30T17:00:00","modified_gmt":"2021-12-30T14:00:00","slug":"genesis-issues-6m-nft-backed-loan-to-meta4-capital","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/genesis-issues-6m-nft-backed-loan-to-meta4-capital\/","title":{"rendered":"# Genesis issues $6M NFT-backed loan to Meta4 Capital"},"content":{"rendered":"

“# Genesis issues $6M NFT-backed loan to Meta4 Capital <\/strong>”
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Genesis Global Capital has completed one of its first purely NFT-backed loans for $6 million to Meta4 Capital, a Miami-based Web3 focused investment management firm. This loan is notable not just for its amount but for solely using nonfungible tokens (NFTs) as collateral instead of including broader liquid collateral. Meta4 operates as an NFT VC backed by Andreessen Horowitz, specializing in acquiring presumed rare and historically significant NFTs.<\/p>\n

The proceeds of Genesis\u2019 loan were used to finalize Meta4\u2019s purchase of three NFTs part of Sotheby\u2019s Metaverse \u201cNatively Digital\u201d October NFT auction: the $3.4 million record-setting gold Bored Ape Yacht Club #8817, the Rare Pepe PEPENOPOULOS for $3.6 million and an NFT from FingerprintDAO\u2019s Mitchell F. Chan for $1.5 million. These acquisitions acted as bridge capital until Meta4 closed a Series<\/a> B round on Dec. 1 for an undisclosed amount. All Meta4 investors received a proportional share of each item procured. <\/p>\n

Brandon Buchanan, Meta4 Capital\u2019s CEO and co-founder, told Cointelegraph that NFT-backed loans provide a better way to manage risk on the underlying asset, usually Ether (ETH).<\/p>\n

\u201cNFTs that would otherwise be in a mostly static state are now being put to work and we\u2019re able to financially engineer returns in excess of the interest rate for our investors either by buying additional NFTs or earning yield through DeFi protocols.\u201d<\/p><\/blockquote>\n

Buchanan also expressed his \u201cthrill\u201d to be partnering with a brokerage like Genesis, who provides \u201ccredence\u201d and value to NFTs and NFT-backed lending.<\/p>\n

Related:\u00a0NFT-collateralized loan platform Arcade raises $15M in funding round<\/em><\/strong><\/p>\n

Genesis\u2019 VP of Institutional Lending, Roshun Patel, affirmed to Cointelegraph that the company is accepting what are considered as \u201cblue chip\u201d NFTs for now.<\/p>\n

\u201cWe\u2019re looking at the most liquid, high individual value NFTs. Right now, only a few CryptoPunks and Bored Apes fit into that category, as well as select Pak and Nouns NFTs,\u201d he said.<\/p>\n

NFT as a novel form of collateral is being spearheaded by crypto native companies and protocols. The loan between Genesis and Mera4 Capital further advances the growth of financial products for institutional investors in the NFT asset class.<\/p>\n