NFT (Non-Fungible Token)

An NFT (Non-Fungible Token) is a unique digital asset on a blockchain — each token has distinct characteristics, unlike fungible tokens like Bitcoin where every unit is interchangeable. NFTs commonly represent digital art, collectibles, music, in-game items, and (occasionally) real-world asset ownership.

NFTs are taxed as collectibles by the IRS, which means long-term gains on NFT sales can be taxed at up to 28% — higher than the 20% max on stocks or other crypto. They're also highly illiquid.

Why it matters for Milo customers

NFTs aren't accepted as collateral at Milo. Their illiquidity, valuation difficulty, and collectibles tax treatment put them outside what institutional-grade lending can structure around. Borrowers with significant NFT holdings typically convert key pieces to BTC or ETH if they want to access liquidity through Milo.

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