Arcade, which is a platform that usually allows users to utilize their NFTs as loan collateral, has managed to raise $15 million in a funding round. In an announcement that took place on Wednesday, the platform stated that Pantera, Castle Island Ventures, Golden Tree Asset Management, Franklin Templeton Blockchain Fund, Eniac Ventures, Probably Nothing Capital, Protofun, and Lemniscap, along with BlockFi CEO Zac Prince and the CEO of Quantstamp Richard Ma, were the main investors coming together in an effort to connect most of the NFT collateralized lending within the financial space of DeFi.
The platform will also be coming out of its private release with $3.3 million in total loan volume being secured on a total asset sum of $10 million.
Arcade Receives A Massive Financial Boost
Gabe Frank, the co-founder of Arcade, recently stated that NFTs accounted for quite a significant portion of the ever-growing market of DeFi, which currently has a worth of over $250 billion in terms of total value locked. He further stated that the lack of infrastructure in DeFi would also prevent most of the NFT holders from achieving any form of massive liquidity on their holdings despite coming up with massive market caps.
The LinkedIn page of Arcade showcases around 10 US-based employees, with the company currently hiring for a multitude of roles, which includes a lead talent specialist, a senior software engineer, and a team coordinator.
Lauren Stephanian, the principal of Pantera Capital, stated that the collateralization of NFTs by the platform had the massive potential of incentivizing participation from institutional lenders, DAOs, high-net-worth individuals, companies with NFTs on their balance sheets, and quite a few NFT collectors.
Other platforms similar to Arcade- which are in the process of launching services to facilitate NFT loans include Drops and ETNA Networks.
