Safe, a virtual asset manager, has partnered with nonfungible token (NFT) lending platform NFTfi to bring a new product for NFT owners and offer additional value to digital assets.
It has been reported that NFTfi and Safe confirmed the partnership in separate press releases. The new product, the NFT rights management wallet, is devised to enable users of the Safe Ethereum wallet to segregate and delegate some rights and consents related to their NFTs to other Ethereum addresses. As reported, this development tends to help enhance the efficiency of NFT rights.
However, Safe also unveiled the investment of an undisclosed amount in NFTfi. This investment, as revealed, will become part of its product suite. Notably, Gnosis Safe has been rebranded to Safe after the community voted for the spin-off. Additionally, the move comes after a $100 million injection of investment led by a 1kx crypto fund. NFTfi hinted that BootNode, a web3 development studio, will lead the technical execution of the open-source NFT rights management wallet product.
Stephen Young, the CEO of NFTfi, hinted that the product (Rights Management Wallet) would not be use case specific. According to Young, the product aims to achieve its long-term vision, “usher in a new era of utility,” and “unlock tremendous value for the entire NFT space.”
He added that the product possesses an immediate advantage over NFTfi. According to him, it tends to make loans more convenient and cheaper. Young believes if NFTs are explored as collateral in a safe NFT loan, it tends to move to a third-party escrow wallet for the duration of the loan.
The report said that the product will enable NFT holders to transfer their rights to NFTfi. Notably, Young hinted that the NFT lending protocol vows to emerge as the leading settlement layer for NFT financial operations. This, according to him, will be possible by aiding NFT financial products, including loans, liquidity tools, and derivatives.
Likewise, the NFTfi further states that the protocol “pursues a platform strategy in which external developers and teams can build agreement types, such as rentals or options, and use NFTfi’s existing distribution and liquidity to build profitable services on top.”
Lukas Schor, the co-founder of Safe, also reacted to the development. According to Schor, Safe’s investment in NFTfi was not sponsored by its latest funding round. This, according to him, was because the investment emanated before the official spin-off from Gnosis and the eventual conclusion of the funding round. He noted that virtual asset management company is focused on the NFT right management product.
Schor said Safe has “gained significant traction with big treasuries” and that NFTs remain an “important driver for retail users to adopt more secure self-custody setups.”
Thus, Manu Garcia, the CEO and co-founder of BootNode, is optimistic that the project will aid rights productivity, “which is to NFTs what capital efficiency is to DeFi.”
Source: Inside Bitcoins