# Lender bridges his Patek Phillipe watch into NFT to borrow money onchain

Source: https://twitter.com/CirrusNFT/status/1678502614730936320?s=20

## Summary

A lender gave a stranger a $35,000 loan at 12% APR using a Patek Philippe watch as collateral, with the arrangement run through NFTs on the Arcade platform. The borrower sent the watch to an escrow company, which returned an NFT representing ownership of the watch. After the borrower listed the NFT on Arcade and accepted the best loan offer, the NFT was moved to an escrow wallet until the loan was repaid or its term ended. The watch can only be retrieved by burning the NFT, so if the borrower defaults, the lender can claim the watch. The post argues that tokenized ownership of real-world assets is a likely direction for future lending.

## Article

Coolest thing I saw on chain this week was a lender giving a stranger a $35,000 loan at 12% APR using a Patek Phillipe as collateral

Borrower sent the watch to an escrow company who then sent back an NFT that represents ownership of the watch

Borrower then listed the NFT on Arcade, accepted the best loan offer on it, and then the NFT was transferred to an escrow wallet until the term is up or the borrower repays

The only way to get the watch back is by burning the NFT so if the borrower defaults the lender can claim the watch

Lender doesn't even have to know the borrowers name, they just have to know that they are the rightful owner of the watch - which is what the NFT does

Sure, you can just go get a loan at your local pawnshop, but tapping into global liquidity versus local liquidity will always eventually land you at the best rate (This market is young so we aren't there yet)

Just the tip of the iceberg for whats to come for proving ownership of Real World Assets using NFTs