A $1.1 Million On-Chain Loan Secured by Supreme T-Shirts

2023-9-5 03:03

In a recent development that underscores the growing utility of NFTs, an individual has successfully secured a $1.1 million on-chain loan using an NFT as collateral on Arcade.xyz. The NFT in question represents ownership of a complete set of Supreme Box logo T-shirts, a collection that was appraised by Sotheby’s at approximately $2.5 million a couple of years ago.

The owner of this coveted streetwear collection sent the physical set, weighing over 1000 pounds, to an escrow company. In return, the company issued NFTs that digitally signify ownership of the shirts. This move allowed the borrower to tap into global liquidity, demonstrating the increasing interplay between physical assets and their digital representations.

How the Loan Works

Once the NFTs were minted and ownership was verified, the borrower used these digital tokens to secure a loan from a stranger in the decentralized finance (DeFi) ecosystem. The transaction was conducted on-chain, meaning it was executed on a blockchain, ensuring transparency and security for both parties involved.

The terms of the loan stipulate that if the borrower defaults on the repayment, the lender has the right to use the NFT to redeem the physical T-shirts. This creates a safety net for the lender while providing the borrower with a unique avenue to access funds without liquidating a valuable asset.

NFTs as a Financial Instrument

This transaction is noteworthy for several reasons. First, it highlights the potential of NFTs to serve as a reliable form of collateral in financial transactions. While NFTs have primarily been associated with digital art and collectibles, this event marks a significant step toward their acceptance in more traditional financial settings.

Second, the transaction illustrates the seamless integration of physical and digital assets, enabled by blockchain technology. The use of an escrow service to verify and hold the physical asset while issuing an NFT as proof of ownership adds an extra layer of security and trust to the process.

Lastly, the ability to tap into global liquidity through decentralized platforms opens up new possibilities for asset-backed lending. It allows individuals to leverage unique assets, such as collectible streetwear, to secure loans from a global pool of lenders, bypassing traditional financial institutions.

Conclusion

In summary, the successful execution of a $1.1 million on-chain loan using an NFT-backed Supreme T-shirt collection as collateral is a compelling example of how NFTs are expanding their role in the financial sector. It not only validates the utility of NFTs as a form of collateral but also showcases the innovative ways in which blockchain technology can bridge the gap between physical and digital assets.

The post A $1.1 Million On-Chain Loan Secured by Supreme T-Shirts appeared first on NFT News Today.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Lendoit (LOAN) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 LOAN

million supreme secured loan on-chain t-shirts nft

million supreme → Результатов: 56


Фото:

Binance Chain Reigns Supreme in $80 Million Bitcoin Sidechain Market

We’ve all heard it happening before — someone manages to send their Bitcoin (BTC) to an address on a different blockchain, and pretty much has to kiss their money goodbye. However, with the advent of Bitcoin sidechains, it’s now possible to safely transfer Bitcoin to a variety of other blockchains in return for native BTC-pegged […] The post Binance Chain Reigns Supreme in $80 Million Bitcoin Sidechain Market appeared first on BeInCrypto.

2019-10-18 17:05


Фото:

QuadrigaCX’s auditor EY and its lawyers will get $1.6M while victims are kept waiting

A judge in Canada has approved over $1. 6 million in fees for businesses seeking to recover funds lost as a result of QuadrigaCX’s demise. In a legal notice published yesterday, Nova Scotia Supreme Court Judge Darlene Jamieson said: “There being no expressed opposition to the activities and accounts as presented by the monitor nor to the fees of its legal counsel, I approve the fees and activities of the monitor during the CCAA proceedings and the fees presented towards legal counsel.

2019-8-1 14:12


Can Digital Gold overthrow the OG store of value, Gold and reign supreme?

Bitcoin’s value was borne out of its limited supply (just like Gold) of 21 million, hence the world’s oldest cryptocurrency is often touted as “digital gold”. When Bitcoin was first conceived in 2008, the world witnessed a myriad of naysayers dismissing the tech and currency, while the optimistic rooted for the crypto-asset to pave the […] The post Can Digital Gold overthrow the OG store of value, Gold and reign supreme? appeared first on AMBCrypto.

2019-7-9 03:30


Фото:

Op Ed: A Summary of

In the latest on the ongoing legal dispute between the New York Attorney General (NYAG), cryptocurrency exchange Bitfinex and stablecoin issuer Tether, the New York Supreme Court has modified an April 24, 2019, preliminary injunction and now Bitfinex is allowed to continue using the Tether reserves that were loaned to it to maintain its ordinary course of business, such as paying employees and consultants.

2019-5-18 22:14


Фото:

Tether and Bitfinex Ask New York Attorney General for Fund Accessibility

Attorneys for Tether and Bitfinex are hoping to get the former access to its reserves amid a legal dispute with New York Office of the Attorney General (NYOAG). In a letter sent to the New York County Supreme Court, attorneys representing iFinex (the parent organization of Bitfinex) and Tether took issue with the restrictions that had been placed on Tether's transactions with related parties as part of an ongoing case against them, stating that the NYOAG had no basis for disallowing tether (USDT) holders and other affiliated entities from redeeming their tokens.

2019-5-16 18:51


Фото:

Bitfinex Faces Legal Action From NY Attorney General: Here’s What This Means

The New York Office of the Attorney General (AG) wants to take a closer look into the business operations of Bitfinex and related stablecoin issuer Tether (USDT). According to a legal petition filed with the Supreme Court of New York, the NY Attorney General Office of Letitia James is applying for a court order to investigate Bitfinex’s suite of interrelated companies (including its umbrella firm iFinex and Tether Holdings Limited) for “ongoing fraud” to the tune of $850 million.

2019-4-27 01:30


Фото:

Texan Dark Web Drug Dealers who Sold Steroids to Professional Athletes Plead Guilty

Two Texan men have pled guilty at the Manhattan Supreme Court to selling illegal steroids and other drugs on the dark web, reportedly netting $2. 8 million during their five-year-long operation.   Drug Dealers Plead Guilty Callaway Crain and Mark Sanchez, both 35, ran an illegal operation from 2013 to 2018 during which the duo sold steroidsRead MoreRead More.

2019-4-25 05:00


Korea’s Biggest Actor Invests in Crypto and That’s a Big Deal for Asian Markets

Bae Yong-joon, arguably the most influential and widely recognized actor in South Korea featured in films like Winter Sonata and The Legend, invested in a local crypto startup called Seamon. Importance of a Public Figure Investing in the Crypto Space in South Korea According to Hankyoreh, a mainstream media outlet in South Korea, Seamon is co-founded by the Norway-based Ocean Supreme, the most dominant company in the Japanese Salmon market.

2019-3-13 17:12


QuadrigaCX CEO Widow Demands $225,000, Draws Ire of Investors Who Lost $150 Million

Jennifer Robertson, the widow of Gerald Cotten, the CEO of Canada’s biggest crypto exchange QuadrigaCX, has requested for reimbursement of $225,000 in court fees. Robertson, who initially filed an affidavit with the Supreme Court of Nova Scotia to reveal the death of CEO Gerald Cotten and the loss of over $150 million in crypto and cash by QuadrigaCX, reportedly claimed she had spent $225,000 to secure QuadrigaCX protection from creditors.

2019-3-6 19:41


$136 Million in Missing Crypto From QuadrigaCX Could be Gone Forever: WSJ

Canada’s largest digital asset exchange QuadrigaCX has claimed to have lost more than $136 million worth of crypto in cold wallets controlled by its CEO Gerald Cotten. In an official affidavit filed with the Nova Scotia Supreme Court by Jennifer Robertson, the widow of Cotten, Robertson claimed Cotten passed away in India with the sole control over user funds.

2019-2-8 13:16