What is Nexo?
Nexo is “the world’s first instant crypto-backed loans” provider which allows anybody to put their cryptocurrency up as collateral for a loan. After users deposit cryptocurrency into Nexo’s online wallet they are granted credit in terms of fiat currency on the basis of the current market value of cryptocurrency added to the wallet. Upon successful repayment of the loan, the user’s crypto funds are unlocked and may be removed out of the Nexo online wallet. The entire loan process is automated, meaning users can have fiat currency deposited directly to their bank account in less than 3 hours time. Nexo places heavy emphasis on regulatory compliance in order to assure that its users are not taken advantage of and get the best possible valuation on their crypto deposits.
History of Nexo
Nexo was developed by Credissimo, which was founded in 2008. Credissimo sought to create solutions to efficiencies in traditional lending markets, using technology to develop unique loan products. In 2014, Credissimo became a publicly traded company, becoming one of Europe’s largest loan processors specializing in its particular form of financing. After integrating bitcoin and cryptocurrency payments into their system in 2016, they went on to create Nexo, in 2017. One of Nexo’s biggest backers in Michael Arrington, founder of the technology news and review website TechCrunch. Some of Nexo’s partners include the Bitcoin Foundation, Enterprise Ethereum Alliance and Bitcoin Association Switzerland. To date, Nexo has processed over $1 billion in crypto-backed loan requests and boasts a social media community of over 50,000 followers.
How Nexo Works
To use Nexo, anyone can deposit a wide variety of crypto funds into Nexo’s online wallet. The fiat value of the funds is thus calculated, and a margin amount is established in case if the assets should decline in value during the period of the loan. Nexo loans can range in size from $1,000 all the way up to $2,000,000. Loan limits are based on the market value of crypto assets deposited into the user’s Nexo Wallet. After a loan has been made, additional credit is automatically and promptly available upon appreciation of the value of cryptocurrency kept in the wallet.
Nexo is quite different from most other cryptocurrency platforms, and as a loan provision service, it offers the following competitive advantages:
No credit checks. Nexo does not require that its customers undergo a credit check of any sort and can provide loans for anybody with cryptocurrency equity.
Live automated platform. Nexo’s instant lending platform allows for a continuous user experience and offers military-grade security with 256-bit encryption.
SEC-approved custodian. Nexo has partnershipped with blockchain security experts BitGoto to secure crypto assets kept in their platform wallet. A highly recognized name in the business, BitGo is used by industry leaders like Kraken, CME Group, Pantera Capital, The Royal Mint and UPbit.
Regulatory compliance. Nexo obeys all KYC and AML regulatory compliance standards with Onfido, which is used by Coinbase, Revolut, HSBC, Nationwide, TransferWise and Bittrex.