According to a recent tweet, a million-dollar loan has been issued using an unconventional collateral – a complete set of Supreme Box logo T-shirts represented as an NFT.
$1,1 million in Supreme t-shirts
Crypto influencer Cirrus has detailed the process, explaining that the over 1000lb set of Supreme Box T-shirts was dispatched to an escrow company. This company, in return, issued NFTs representing the ownership of the shirts. Subsequently, the borrower leveraged this NFT to tap into global liquidity.
A unique aspect of this transaction is the form of collateral. If the borrower defaults on the loan, the lender can use the NFTs to reclaim the shirts. This inventive approach exemplifies the versatile use of NFTs as proof of ownership, in this case, of a coveted streetwear collection.
This transaction isn’t merely remarkable because of its innovative nature but also due to the value of the collateral involved. A couple of years prior, the renowned auction house Christie’s appraised a collection of 253 Supreme T-shirts at approximately $2 million.
This incident marks a pivotal moment where the owner of a highly prized streetwear collection leveraged the proof of ownership provided by NFTs for a substantial on-chain loan.
NFTs breaking barriers in digital finance
The evolution of digital transactions has reached a new pinnacle with this extraordinary use of NFTs as collateral for a million-dollar loan. It is not just a testament to the growing acceptance and utility of NFTs but also an illustration of how cherished collectibles, such as a Supreme Box logo T-shirt collection, can be utilized in the digital finance world.