Someone Just Took a $1,100,000 on-chain Loan from a Stranger using an NFT as Collateral. Is this How NFTs are Going to Take over World Finance?

Someone recently took out a $1.1 million loan using an NFT of a complete set of Supreme Box Logo T-shirts as collateral from an anonymous individual.

The NFT, which represents ownership of the shirts, which would be at least over a thousand pounds in weight, was sent to an escrow company ( 4K Company). The 4Kcompany then issued NFT tokens to the borrower, which represent the legal ownership rights to the shirts. It's worth noting that if the borrower defaults on their loan, the lender retains the ability to utilize the NFTs as a means to redeem the physical shirts. Notably, a few years ago, Christie's in 2018 assessed the collection of 291 shirts at approximately $2.5 million, it's an immense value tied to this unconventional transaction.

(Every Supreme Box Logo Tee released from 1994 to 2022.)

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Loan Faciliated on ArcadeXYZ

With Terms:

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Loan Terms

The costs associated with storing 291 Supreme T-shirts are listed below by 4KCompany, who then gave the borrower NFT tokens to use as collateral. Because of the insured value of $1.2 million, the monthly storage expenses of $700, and the fact that Supreme was a different brand back then and has subsequently lost all of its appeal and worth since its peak in 2020, the lender will undoubtedly take the axe.

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Storage Costs