- NFTfi is a peer-to-peer platform that allows NFT holders and liquidity providers to connect by means of permissionless smart contract infrastructure
- NFTfi is an NFT collateralised lending marketplace that allows users to utilise NFT assets as collateral for loans or to lend to other users.
- The company was founded by Jonathan Gabler and Stephen Young in Cape Town, South Africa in 2020.
- NFTfi raised an impressive $5 million in a seeding round towards the end of 2021, led by the likes of Ashton Kutcher’s Sound Ventures.
Website: https://nftfi.com
What Is NFTi?
NFTfi is a South African-founded platform that enables NFT holders to unlock liquidity by using their digital assets as collateral for cryptocurrency loans. Launched in 2020 with Stephen Young at the helm and joined by Jonathan Gabler not long after, the platform operates as a peer-to-peer marketplace where borrowers can list their NFTs and receive loan offers from lenders.
These loans are typically denominated in wETH, DAI or USDC, with loan amounts up to 50% of the NFT’s assessed value. Once a borrower accepts an offer, the NFT is securely held in an escrow smart contract which ensures that both parties are protected during the loan term – that is, nobody can back out without warning or anything of the like.
If the borrower repays the loan with interest, the NFT is returned, but if not, the lender receives the NFT. NFTfi charges a 5% fee on the interest earned by lenders but it doesn’t profit from defaults. The platform supports over 100 top-tier NFT collections, including Bored Ape Yacht Club and CryptoPunks.
What Makes NFTfi Unique?
NFTfi sets itself apart from other crypto and NFT lending platforms by means of its strong emphasis on flexibility, user autonomy and borrower-friendly features. Unlike many DeFi protocols that charge borrowers fees or implement automatic liquidation mechanisms, NFTfi offers fixed-term, peer-to-peer loans without auto-liquidation, which means that users aren’t at risk of losing their NFTs due to market volatility mid-loan which is a significant perk.
Borrowers and lenders negotiate loan terms directly, including amount, duration and interest, allowing for personalised agreements that suit each party’s risk appetite and needs. NFTfi doesn’t charge any fees to borrowers, and on top of that, it only takes a 5% cut from the lender’s earned interest, making it more accessible and cost-efficient for users seeking liquidity without having to sell their digital assets.
The platform also supports over 150 top-tier NFT collections, giving participants a broad range of collateral options. Security is a core focus, with smart contracts independently audited by ChainSecurity and Halborn. NFTfi’s active community, especially through Discord, further supports transparency and peer interaction, distinguishing it from more automated, opaque DeFi protocols.
Want to be featured as TechRound’s Startup of the Week? Find out more about this weekly feature, and how to get involved, here.
Is There a Market For NFT-Backed Lending/Borrowing Platforms?
There’s no doubt about the fact that there’s a growing market for NFT-backed lending and borrowing platforms like NFTfi, as the NFT space continues to mature beyond speculative trading. Plenty of NFT holders own valuable digital assets, but they lack immediate liquidity.
Thus, platforms like NFTfi make it possible for these users to unlock capital without selling their NFTs, by using them as collateral for short-term loans. This appeals not only to individual collectors but also to investors and institutions seeking to generate yield or access capital efficiently.
The increasing integration of NFTs into broader decentralised finance (DeFi) ecosystems highlights rising demand for such utility. Furthermore, NFTfi’s support for high-profile collections and its peer-to-peer lending model offers both flexibility and trust in a market that’s still relatively new. As NFTs evolve from digital art into more functional assets, platforms enabling financial utility – like borrowing, lending and refinancing – are likely to see sustained and significant growth, confirming clear demand in this niche.
What Products Does NFTfi Offer?
NFTfi offers a range of products that unlock liquidity and expand the financial utility of NFTs. Its core service is peer-to-peer NFT-backed lending, where users can borrow crypto like wETH, DAI or USDC by using their NFTs as collateral. Lenders propose terms, and once they’re agreed upon, the NFT is held securely in escrow until the loan is repaid.
Beyond individual loans, NFTfi allows users to bundle multiple NFTs into a single loan offer using ERC998 tokens – this is ideal for those seeking larger loans with diverse collateral. The platform also supports loan refinancing, giving borrowers the option to extend terms without full repayment upfront.
Additionally, NFTfi has introduced an NFT Rights Management Wallet in partnership with Bootnode and Safe, enabling users to delegate specific rights (like receiving airdrops or renting NFTs) without transferring ownership. These innovative products make NFTfi a flexible and user-friendly platform for anyone looking to leverage the financial potential of their NFTs.
