South African asset-backed lender Lamna Financial believes it is one of the first in the world, and the first in Africa, to offer loan advances against non-fungible tokens (NFTs).
An NFT is a unit of data stored on a blockchain. This certifies it as unique and therefore not interchangeable, and can represent digital files such as art, photos, audio and more.
Lamna co-founder Charles Meyerowitz says that Lamna’s move into the digital space is more than merely “moving with the times”.
He says: “With the rapid growth of crypto currencies we understand that our clients’ buying power has increased, and this includes investing in digital asset classes.
“We understand that the modern client isn’t limited to investing in traditional assets such as physical works of art, motor vehicles or jewellery, and so to be a relevant asset-backed lender in the 21st Century, we are leading the charge in the world to cater to these investors who need to unlock the liquidity of their assets,” he says.
Once Lamna has verified the unique identity and ownership of an NFT, and ascertained the value of the asset, it makes an initial loan offer to the registered owner.
Meyerowitz says he expects rapid growth of NFTs put forward as collateral for short-term loans, joining the list of the other most-leveraged assets. Lamna has disbursed more than a billion rand in short-term loans and advances in the past five years in almost every corner of the country, and NFTs are expected to become a substantial portion of new business.