Meta4 Capital was a Miami-based Web3-focused investment management company that received one of Genesis Global Capital’s $6 million first NFT-backed loans. The loan’s size is important, but it also uses nonfungible tokens instead of more liquid collateral. Meta4 is an Andreessen Horowitz-backed NFT VC that specializes in the acquisition of rare, historically important NFTs.

Meta4 purchased three NFTs in October’s Sotheby’s Metaverse NFT Auction. They were the Bored Ape Yacht Club #8817 (record-setting at $3.4million), the Rare Pepe PEPENOPOULOS (record-setting at $3.6million), and a Fingerprint DAO NFT of Mitchell F. Chan (record-setting at $1.5million). These purchases served as bridges to Meta4’s Series B round. It closed Dec. 1, for unknown amounts. Every item purchased was divided equally among Meta4 investors.

You can also read: An artist releases NFTs for innovative digital art from 1985

In an interview with CoinTelegraph Brandon Buchanan, Meta4 Capital CEO and cofounder, said that he was able “to financially engineer returns beyond the interest rate for investors through purchasing additional NFTs, or earning yield via DeFi protocols. We’re also able put NFTs to work that otherwise would be essentially stationary.” Buchanan spoke out about his enthusiasm to work with Genesis. NFTs can trust this brokerage for their financing.

Roshun Patel (Genesis’ VP for Institutional Lending) confirmed to Cointelegraph the company was currently accepting “blue chips” NFTs. “We are searching for liquid NFTs of the highest individual values.” “We currently have a small number of CryptoPunks and Bored Apes along with a few Paks and Nouns NFTs that fit in this category,” he said.

NFT is being used as collateral by crypto-native protocols and firms. Meta4 Capital and Genesis will lend to NFT, allowing it to expand its offerings for institutional investors.

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