Arcade recently closed a $ 15 million Series A fundraiser to provide secured loans that link non-fungible tokens (NFTs) to decentralized finance (DeFi), according to a CoinDesk report on Wednesday (December 22).
Arcade will use the new capital to build products and add new employees, including in the legal department, to help the company better understand NFT regulations, Arcade co-founder Gabe Frank told CoinDesk in an interview.
Pantera Capital cryptocurrency investor, Castle Island Ventures, Franklin Templeton, BlockFi CEO Zac Prince and Quantstamp CEO Richard Ma were among the investors in Arcade’s Series A funding round.
Arcade evaluates, validates and manages NFT collections for institutions, decentralized autonomous organizations (DAO) and collectors. The company is “fully compatible with all ERC-20 tokens, including wETH, USDC, and DAI,” according to the CoinDesk report.
Arcade’s Wrapped NFT technology allows NFTs to be grouped together to secure a loan. The company is also an open source DeFi primitive, which means it allows developers to build on the platform.
“I started collecting NFTs and realized that there was a lack of infrastructure in terms of getting liquidity on these assets,” Frank told CoinDesk.
Arcade is coming out of a private version with a loan volume of $ 3.3 million, which it has secured over $ 10 million in assets on the Arcade platform.
Related news: 2021 is the year of NFT and Omnichannel Auction Houses
Meanwhile, 2021 was the year the NFT hit the mainstream and became another new acronym on everyone’s lips. Sotheby’s and Christie’s sold $ 65 million and NFT 100 million respectively this year, as auction houses sought to deepen the industry by making social media deals with buyers and securing NFTs from artists who designed and executed them.
“I see Sotheby’s moving from where people used to bid at auctions to where people now shop online at Sotheby’s website,” said Karen Webster, CEO of PYMNTS.
The 1stDibs online auction marketplace sells art, antiques, jewelry, and NFTs. Its website urges visitors to “give in unique ways” this holiday shopping season, including live auctions for NFTs, like a $ 39,606.40 video of a luminescent fish called “Summoning Circle.”