The pioneering Bitcoin lending platform Liquidium has raised $1.25 million in a pre-seed funding round to further develop its innovative solutions that allow the use of non-fungible tokens called Ordinals as collateral for loans denominated in Bitcoin.
The successful funding round highlights the increasing mainstream traction and demand for crypto-native financial services that expand Bitcoin’s usefulness beyond payments. With backing from leading crypto venture funds like Bitcoin Frontier Fund and Sora Ventures, Liquidium aims to establish itself as the leading fair and accessible on-chain lending market on Bitcoin.
Collateralizing Rare Digital Art for Bitcoin Lending
Liquidium utilizes technical protocols like Partially Signed Bitcoin Transactions and Discreet Log Contracts that allow the use of Ordinals – Bitcoin’s version of NFTs – as loan collateral while avoiding the need for smart contracts. Since the Ordinals represent ownership of rare digital art and other collectibles, this unlocks their latent financial utility.
By enabling lending against these illiquid assets, Liquidium creates earning opportunities for lenders while allowing borrowers to access liquidity without selling their cherished NFT possessions. Since its launch in July 2022, Liquidium has already facilitated over 300 loans worth upwards of $870,000 in volume.
Having established an impressive track record in closed beta, Liquidium has now opened access to everyone by shifting to open beta. The platform is working on expanding support to fungible tokens on Bitcoin as additional collateral options.
“Bitcoin opened an era of fair, non-custodial, accessible transactions. Until recently it was limited to basic payments. At Liquidium, we took this vision further and created the leading fair, non-custodial, and accessible lending market on Bitcoin, the most secure blockchain in existence,” said Robin Obermaier, CEO and Co-Founder.
Validation Of Liquidium’s Vision
The successful funding round validates Liquidium’s potential to bring innovation to Bitcoin lending markets. With backing from savvy crypto investors, Liquidium is strategically positioned to increase the adoption of Ordinals and expand Bitcoin’s utility.
“I truly appreciate the opportunity Liquidium has provided me. I wouldn’t have the collection I have today without this platform,” said Borrower of Liquidium, who acquired Ordinals with the help of Liquidium.
As Liquidium executes on its vision with continued product development, it could reshape how lending and borrowing work in the Bitcoin ecosystem – bringing maturity and diversity similar to traditional finance.