Overview
Nexo, established in 2018, is a financial technology company specializing in cryptocurrency-backed lending and borrowing services. The platform enables users to leverage their digital assets as collateral to obtain fiat or stablecoin loans, eliminating the need to liquidate holdings. Additionally, Nexo offers interest-earning accounts, allowing users to accrue returns on their cryptocurrency deposits.
Services and Products
Crypto-Backed Loans
Nexo provides instant crypto-backed loans, permitting users to borrow funds by pledging their digital assets as collateral. Supported cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). Loan amounts range from $50 to $2 million, with interest rates starting at 0%. The platform offers flexible repayment options without hidden fees or credit checks.
Interest-Earning Accounts
Users can earn interest on their cryptocurrency holdings through Nexo’s interest-earning accounts. The platform supports over 40 digital assets, including stablecoins and fiat currencies. Interest rates vary depending on the asset and the user’s loyalty tier, with rates up to 16% annual percentage yield (APY). Interest is compounded daily and paid out monthly.
Nexo Card
The Nexo Card, linked to the user’s crypto-backed credit line, allows spending without selling digital assets. The card is accepted by merchants worldwide that support Mastercard. Users can earn up to 2% cashback in Bitcoin or NEXO tokens on every purchase. The card supports multiple fiat currencies and offers real-time transaction notifications.
Nexo Exchange
Nexo’s in-app exchange enables users to buy, sell, and swap between various cryptocurrencies. The platform supports over 300 market pairs and offers competitive rates. Users can execute transactions instantly, with the option to earn interest on assets held within the exchange.
NEXO Token
The NEXO token is the platform’s native utility token, providing holders with benefits such as higher interest rates, lower borrowing rates, and dividends from Nexo’s profits. The token operates on the Ethereum blockchain and complies with ERC-20 standards. NEXO tokens can be traded on various cryptocurrency exchanges.
Security and Compliance
Nexo employs industry-standard security measures, including military-grade 256-bit encryption and biometric-based identity verification. The platform’s custodial assets are insured for up to $375 million through partnerships with reputable custodians. Nexo adheres to regulatory requirements in the jurisdictions it operates, implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to ensure compliance.
Recent Developments
In 2023, Nexo expanded its services by introducing support for additional cryptocurrencies and enhancing its mobile application for improved user experience. The platform also launched a sustainability initiative, aiming to achieve carbon neutrality by offsetting its operational carbon footprint. Nexo continues to explore partnerships and integrations to broaden its service offerings and maintain a competitive edge in the evolving cryptocurrency market.
