Arcade NFT-collateralized Loan Platform Raises US$15 Million

Arcade platform (which enables users to utilize NFTs as loan collateral) has raised US$15 million in Series A funding, participated by Panetel Capital. 

Arcade (a popular platform that enables users to utilize NFTs as loan collateral) has raised US$15 million in Series A funding that was participated by Panetel Capital asset management company. 

The funding round was participated by the behemoth companies and angel investors such as:

  1. Pantera Capital
  2. Castle Island Ventures
  3. Franklin Templeton Blockchain Fund
  4. Golden Tree Asset Management
  5. Eniac Ventures
  6. Protofund
  7. Probably Nothing Capital 
  8. Lemniscap 
  9. BlockFi CEO Zac Prince 
  10. Quantstamp CEO Richard Ma

The US$15 million funds raised by Arcade will reportedly be used for connecting NFT-collateralized lending with DeFi (decentralized finance). Arcade is also coming out of a private release having US$3.3 million in total volume of loan secured on total assets of US$10 million. 

Gabe Frank, the co-founder of Arcade, said that the nonfungible tokens account for a significant part of the DeFi market, where the current total value locked (TVL) is more than US$250 billion. He said:

“However, the lack of infrastructure in DeFi prevents NFT holders from achieving liquidity on their holdings despite massive market caps.”

Lauren Stephanian, principal at Pantera Capital, has underscored that the NFT collateralization has the potential of incentivizing participation from:

  • Institutional lenders
  • High-net-worth individuals
  • DAOs
  • Companies having non-fungible tokens (NFTs) on their balance sheets 
  • NFT collectors

Arcade is also on a hiring spree and wants to expand its current 10-member team. It is currently recruiting for the following positions:

  • Senior software engineer
  • Lead talent specialist 
  • Team coordinator 

Many other platforms including ETNA Network, Drops (a Lithuania-based lending platform), and Teller Finance (a lending protocol) are already in the process of launching services to facilitate loans against non-fungible assets.