Digital asset trading group Genesis has started accepting NFT’s as collateral for loans and derivatives deals, in a sign that digital art has found its way into the booming market for complex crypto financial products.
Structuring products around NFTs allows investors to pledge their tokens in a similar way to how a traditional trader would use a high-grade asset such as government bonds to underpin a financial deal.
The company is taking a “very conservative approach” to valuing NFTs as a backstop for loans or trades and using them as security against loans or trades.
He said Genesis only takes “blue-chip” NFTs that have some historical significance or a lively market for secondary trading.
