NFT lending platform Arcade has raised $15 million in Series A funding. The funding round brings the start-up’s total funding to $17.75 million, all of which being raised in 2021.
The round was led by Pantera Capital, with Castle Island Ventures, Protofund, Franklin Templeton Blockchain Fund, Golden Tree Asset Management, Eniac Ventures,Probably Nothing Capital, and Lemniscap also participating. Angel investors such as BlockFi CEO Zac Prince and Quantstamp CEO Richard Ma also got involved in the round.
The funding will help Arcade launch publicly next year, in a transition from its current private beta form. It will also be used to increase the reach of its services to more users, as well as to expand its 13-person team in areas across legal, product, business development, marketing, and engineering functions.
Arcade (formerly Pawn.fi) lets users borrow against their NFTs as collateral. The company appraises, validates and curates NFT collections for institutions, DAOs and collectors. Through this service, lenders get access to a new income source, and asset owners can achieve liquidity on their holdings whilst retaining rights and access to collateral on the platform.
The platform currently supports Ethereum-based NFTs as collateral for getting loans in all ERC-20 tokens, including wETH, USDC and DAI. Co-founder Robert Masiello said that opportunities for supporting other blockchains and Layer 2 networks will be explored in 2022, as well as the launch of Arcade’s own native token.
In its private release, Arcade states its largest facilitated loan to be an amount of $800,000, whilst its total loan volume to date is $3.3 million.
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