Lamna Financial, a South African asset-backed lender, claims to be one of the world’s first financial services businesses to issue loan advances against non-fungible tokens, as well as the first in Africa (NFTs). The regulated credit provider targets high-net-worth people with short-term asset-backed loans. Fixed interest rates ranging from 36 percent to 60 percent annual percentage rate are available, with payment terms ranging from three to 24 months.
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“Lamna’s move into the digital space is more than merely ‘moving with the times’,” says Lamna co-founder Charles Meyerowitz.
“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 investors who need to unlock the liquidity of their assets.”
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Since its inception in 2013, the financial services firm claims to have given over R1 billion to over 7 500 clients by offering loans secured by customers’ valuables like as cars, watches, jewelry, gold and diamonds, yachts and boats.
Lamna Financial claims it has expanded its operations to allow clients to accept loans in exchange for NFTs, which are regarded a key asset class for investors, as crypto-exponential currency’s rise has opened up a new world of investment options.
What Are Non-fungible Tokens And How Do They Work?
Essentially, this is the most recent craze in the cryptocurrency world, and it has exploded in recent months. If something is fungible, it can be exchanged for another good or asset; if something is non-fungible, it cannot. Plane tickets are examples of non-fungible assets in the real world. Although two plane tickets may appear identical, they will each have a different destination, seat number, and airline class, preventing them from being swapped like for like.
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Christie’s held the first auction of a piece of art that does not exist in physical form in March.
It was created by digital artist Beeple and sold for $69.3 million (£50.3 million). Earlier this week, Sotheby’s sold a collection of NFTs by digital artist Pak for a total of $16.8 million (£12.2 million), including an image of a single pixel for $1.36 million (£987,000).
“From the creative industry perspective, we believe this is a great opportunity for artists and IPR owners to monetise their existing assets via a new revenue stream. The myth of the starving artist needs to be rewritten. Every creator, artist, influencer has the right to showcase their IP with dignity and on a credible platform with legitimate buyers,” Vishakha Singh, Adviser, NFT Marketplace said.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer