Genesis issues $6M NFT-backed loan to Meta4 Capital By Cointelegraph



© Reuters.

Genesis Global Capital has completed one of its first purely nonfungible token (NFT)-backed loans for $6 million to Meta4 Capital, a Miami-based Web3focused investment management firm. This loan is notable not just for its amount but for solely using nonfungible tokens (NFTs) as collateral instead of including broader liquid collateral. Meta4 operates as an NFT VC backed by Andreessen Horowitz, specializing in acquiring presumed rare and historically significant NFTs.

The proceeds of Genesis’ loan were used to finalize Meta4’s purchase of three NFTs that were part of Sotheby’s Metaverse “Natively Digital” October NFT auction: the $3.4 million record-setting gold Bored Ape Yacht Club #8817, the Rare Pepe PEPENOPOULOS for $3.6 million and an NFT from FingerprintDAO’s Mitchell F. Chan for $1.5 million. These acquisitions acted as bridge capital until Meta4 closed a Series B round on Dec. 1 for an undisclosed amount. All Meta4 investors received a proportional share of each item procured.