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MetaLend rings in $5m seed

MetaLend, a digital bank, has raised $5 million in seed funding.

MetaLend, a digital bank, has raised $5 million in seed funding. Pantera Capital led the round.

PRESS RELEASE

SANTA MONICA, CALIFORNIA—April 21, 2022—MetaLend, the bank for the new digital economy, today announced the closing of a US$5 million Seed Round of financing, led by Pantera Capital, with participation from Collab+Currency, investor and board member of Sky Mavis; Ancient8, Vietnam’s largest gaming guild, and angels such as David Choi, co-founder of MetaStreet (the largest liquidity provider against art-based NFTs).

Founded in December 2021, the MetaLend protocol enables traders to use NFTs as collateral to take out loans, starting with a focus on the GameFi sector. MetaLend empowers NFT owners to continue to utilize their assets to generate yield while the assets are being used as collateral for the loans. After receiving an appraisal of their digital assets by MetaLend, traders are able to borrow up to 30% of the value of their NFT, with loans being disbursed in ETH. Based on these loans, liquidity is provided by lenders looking to earn interest, APY is set by utilization of the liquidity pool with an anticipated range of 5-10%.

More than half of all crypto wallets created in the second half of 2021 were for play-to-earn use cases, driven by mass adoption of GameFi. With an initial focus on Axie Infinity, MetaLend works with game guilds and scholar programs that are looking for additional liquidity to grow their already profitable operations, and plans to expand to other games and use cases wherever NFTs are adopted. By providing over-collateralized loans against NFTs, MetaLend works directly with gaming guilds to support their capital needs and grow their businesses, as well as individual play-to-earn NFT owners looking to tap into day-to-day liquidity for daily life needs.

As a global-facing protocol, MetaLend works with guilds and gamers from around the world, helping them solve their financial needs. The company is in partnership with Vietnam’s Ancient8 to provide the guild and its users with loan solutions, and plans to sign with more guilds in the near-term.

Beyond Axie Infinity, MetaLend will expand its coverage to other play-to-earn games in the coming months, tapping into gaming communities and guilds around the world. The team is also developing new features such as “buy now pay later” (BNPL) service offerings, which will allow gamers to purchase NFTs on installment payments and reduce the barrier to entry into GameFi and other NFT-based applications. MetaLend is currently in closed beta and will be launching to the public in Q2 of this year