NFT collector Seedphrase has secured a record-breaking $2.75 million loan using CryptoPunk #8348 as collateral. The transaction, facilitated through lending platform Gondi, marks the largest loan backed by an NFT to date.

🚨 RECORD-BREAKING NFT LOAN 🚨

The unique 7-trait Punk #8348, owned by @seedphrase, was just used as collateral for a 2,750,000 USDC loan on GONDI.

Terms: 180 day | 17% APR | 41,250 USDC origination fee

This is the single largest on-chain loan against any NFT in history! pic.twitter.com/78wekAgQbO
— GONDI (@gondixyz) November 27, 2024

The loan, issued at an interest rate of 17%, has a six-month term. Seedphrase, the owner of CryptoPunk #8348, is also an investor and advisor to the platform.

“By collateralizing CryptoPunk #8348, I was able to access $2.75 million in capital without giving up ownership of this historic NFT. […] This liquidity allows me to strategically allocate funds across crypto markets,” Seedphrase explained to Decrypt.

According to Gondi co-founder Burga, the deal reflects the growing maturity of NFTs as an asset class:

“[This loan] demonstrates that NFTs are maturing into a legitimate asset class, offering digital asset holders more efficient ways to access liquidity compared to almost any other asset in the world.”

In September, another CryptoPunk, #6915, was sold at a 78% “paper loss,” illustrating the volatility and risks of the NFT market.

Note: This deal underscores the evolving financial landscape for NFTs, highlighting their potential not just as collectibles but as leverageable assets.