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Blockchain and Loans: NFTs as Collateral

People pay a lot of money for NFTs, making them highly valuable assets that should be widely accepted as collateral for loans.

Although traditional lenders won’t accept blockchain assets as collateral, there are countless ways for NFT owners to put up their digital assets to improve liquidity. Below, we’ll explore NFT collateral and outline the top loan platforms. 

DeFi Integration

NFTs have moved beyond simple JPEGs embedded with unique code proving ownership (smart contracts). Instead, they’ve started to integrate with the world of decentralized finance.

In particular, NFTs can be frozen on various platforms to earn yields (income). Additionally, decentralized exchange platforms like PancakeSwap have recognized NFTs as valuable assets by opening their own marketplace. 

Can NFTs Be Used as Collateral?

With some NFTs having such a high value, there is no wonder blockchain platforms are emerging to allow borrowers to secure loans with their NFTs. Entering into a smart contract containing payment terms and loan lengths, neither party has access to the NFT until the loan is repaid. 

The issue with accepting NFT as collateral is the ever-changing value of the NFT, which is why centralized exchanges tend to steer clear for now. However, Fluid Tokens addressed the issue by creating a system where users put up their NFTs along with desirable borrowing amounts and lengths.

When a user provides liquidity and fulfills the smart contract, a borrower can make repayments whenever they like up to the date – and after if the NFT hasn’t been claimed. This system works for lenders as well because they earn interest on any liquidity provided. 

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Top NFT Loan Platforms


Zharta is a Web3 NFT loan platform boasting instant liquidity. Instead of connecting peers, it links borrowers to a liquidity pool, which is why they’re able to grant loans straight away.

The benefit for lenders is they can put in bids on defaulted NFTs, all while earning yield on their liquidity in the pool – a win-win for all involved. To use Zharta, all you need to do is connect your Nft wallet, set the currency and loan period, agree to the terms, and enjoy your loan. 


NFTfi is another platform designed for putting up NFT collateral. Like Zharta, the platform is decentralized, making it 100% anonymous (a desirable feature). This platform is slightly different in that borrowers put up their NFTs, and lenders get in touch with offers. There’s zero obligation to accept a loan, even if you’ve put an NFT into the system – you can always withdraw it. 


Drops is a decentralized NFT loan platform, which allows lenders to use any crypto assets to fill the liquidity pool. If borrowers have unused NFTs or Defi assets, these can be used to secure trustless loans and boost yield. 

NFTs are valuable to owners because money changed hands, meaning they should be accepted as collateral for loans. Developers have recognized this and created platforms for this purpose, like those outlined above. Before using an NFT loan platform, as a lender or borrower, ensure you carry out due diligence first.

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