In a recent development that underlines the transformative power of NFTs, a million-dollar loan has been granted, with an unusual asset securing it – a complete set of Supreme Box logo T-shirts, digitized as NFTs.
Supreme T-Shirts Worth $1.1 Million
This unconventional financial maneuver was revealed through a tweet by crypto influencer Cirrus. The process involved sending the impressive collection of Supreme Box T-shirts, weighing over 1000 pounds, to an escrow company. In return, NFTs representing ownership of these shirts were issued. The borrower then harnessed these NFTs to access global liquidity.
An intriguing facet of this transaction lies in the choice of collateral. In the event of loan default, the lender retains the option to use the NFTs to repossess the physical shirts. This inventive approach showcases the multifaceted nature of NFTs, serving as undeniable proof of ownership for coveted streetwear pieces.
Assessing the Value
This transaction holds significance not only for its innovative nature but also due to the substantial value attached to the collateral. A couple of years ago, Christie’s, the renowned auction house, appraised a collection of 253 Supreme T-shirts at a staggering $2 million.
This incident marks a pivotal moment where the owner of a highly esteemed streetwear collection capitalized on the proof of ownership conferred by NFTs to secure a substantial on-chain loan.
NFTs Shattering Boundaries in Digital Finance
The advancement of digital transactions has reached new heights with this remarkable utilization of NFTs as collateral for a million-dollar loan. It not only underscores the growing acceptance and functionality of NFTs but also demonstrates how cherished collectibles, exemplified here by the Supreme Box logo T-shirt collection, can find relevance and purpose in the digital finance realm.