Flowty, a peer-to-peer non-fungible token (NFT) lending platform on the Flow blockchain, has raised $4.5 million in its initial funding round lead by crypto investment firms Greenfield One and Lattice Capital.
The funds will be utilized to advance platform development as well as to expand the engineering and development team.
“We are a technological platform that facilitates transactions between borrowers and lenders,” Flowty co-founder Michael Levy explained in an interview.
“Because it’s peer-to-peer, and because of how we built up our platform,” Levy explained, “we can deliver our services to people without them having to go through tight regulatory processes.”
“So our platform can be used by anyone – people who are traditionally unbankable, people who are in regions where they don’t have a robust financial system.”
Borrowers create a listing for their NFT on the Flowty marketplace, including the desired loan amount, rate, and term. Lenders select attractive assets and deploy cash, earning income throughout the loan period and receiving the asset if the borrower defaults.
Flowty charges a fee for each loan that is funded and effectively keeps the asset until the loan term is through.
Flowty loans are available in the Flow blockchain stablecoins FUSD and tUSDT. The platform now supports Flow’s native FLOW cryptocurrency as well as the USDC stablecoin.
Top Shot whale
Levy got into crypto when his interest for sports memorabilia led him to be one of the first significant investors in NBA Top Shot from Dapper Labs, which also created the Flow blockchain. Dapper joined Stermion, Tiny VC, Luno Expeditions, and Red Beard Ventures in the Flowty fundraising round.
“The peer-to-peer loan marketplace is the first core feature we built, but we’re working on a number of others,” Levy said. “Our more macro company vision is to be a kind of forefront to the financialization of NFTs.”