Pledge Finance is marketing itself as the world’s leading marketplace for financial NFTs. That value proposition isn’t just a marketing slogan though. It’s something that venture capitalists are taking seriously. Namely SLVC.
That’s because the teams behind both organizations are now officially engaged in a partnership. It’s a landmark announcement for a project that wants to be the first marketplace for unlocking all kinds of opportunities surrounding Bitcoin loans, solving problems that have long plagued the average DeFi investor.
Why the Deal Between Pledge Finance and SLVC Matters
According to a report by PwC, crypto-related mergers and acquisitions increased by nearly 5000% in 2021 alone. The average size of every deal was $179.7 million, three times higher than the average in 2020.
That’s why the partnership between Pledge Finance and SLVC holds a lot of potential. SLVC has helped numerous startups get acquired by big companies like PayPal, Apple, Meta, and Google. The investment by the company doesn’t necessarily signal that an acquisition is coming. It does however solidify Pledge Finance as a crypto project both investors and users need to pay attention to.
The partnership provides Pledge Finance with more clout. Not only that of course. There is big-time money involved, as there always is with these deals.
In this case, SLVC’s involvement will go towards providing funding for liquidity pools, increasing the marketing budget for the project and driving the early adoption of the platform among savvy crypto users. Those crypto users have plenty of reasons to engage with Pledge Finance.
Pledge Finance Aims to Bring Stability and More Options to DeFi
Everyone should have access to DeFi lending opportunities. That’s how Pledge Finance sees things. The platform wants both crypto-savvy users and non-crypto natives to benefit from collateralizing assets, finding loan opportunities that fit their risk profiles, and opportunities to diversify their crypto assets to gain exposure to things like real estate.
It may not be the first project to offer crypto lending opportunities, but it is the first project offering fixed-rate loan opportunities to users. Pledge uses financial NFTs to represent lending contracts. Packaging such an opportunity within a self-executing token lets users speculate and swap interest rates while unlocking opportunities to mint bonds and other fixed-rate instruments.
Having the opportunity to unlock all of these options isn’t something that should only belong to big companies. Both companies and individuals can use Pledge Finance to find loans on a decentralized, permissionless platform. The aim is to serve both those who wish to take on significant risks in exchange for the opportunity to benefit handsomely as well as those looking for stability in the long term.
Pledge Finance co-founder Tony Y. Chan sees endless opportunities in the future thanks to the partnership. “We are proud to have SLVC on board, and glad they see the value of investing in the interest rate swapping market. This market represents trillions of dollars in the legacy financial system and is still ignored in DeFi. Bringing interest rate swapping to DeFi will boost the entire ecosystem and make it possible for massive capital to enter those markets.”
Pledging to Impact the Future of DeFi
Pledge V2 turns Bitcoin loans into financial NFTs and makes them tradable. The concept itself is an amazing one that deserves support. Just saying that out loud feels like something revolutionary is about to happen. These revolutionary concepts don’t come out of the woodwork alone. They need financing and support.
Pledge Finance’s deal with SLVC provides just that. Now that the project is backed by a respected venture capital firm, impacting the future of DeFi seems inevitable for both parties.
It’s time to give the average crypto user even more options. That’s what decentralization and financial NFTs are all about.