Oct 31, 2018 12:42 UTC
Oct 31, 2018 at 12:42 UTC
Lend your Cryptos to Nexo
Nexo has become the first platform in the world to offer cryptocurrency backed loans. The platform is also going to offer hefty interest rates to the users who will store their major stablecoins on the platform.
Naxo offers instant crypto backed loans in over 200 jurisdictions in 40+ cryptocurrencies. The platform is live and providing its services to the clients all over the world. The company is redefining financial freedom and flexibility as the users can have instant access to cash. Nexo is a spin-off from Credissimo, a European fintech group which is serving millions of people across Europe for over ten years. The fintech group is supervised by many European banking and financial service regulators. Naxo offers a seamless user experience with military-grade security.
The primary purpose behind stablecoins is to create a digitized version of existing assets. Most of the stablecoins usually backed by the US Dollar and represent 1 US Dollar in digital form. Stablecoins can be traded freely across many exchanges supporting Bitcoin and altcoin. Nexo, the crypto loan platform sees merits in the new asset class. The users who have stablecoin can earn up to 6.5 per cent interest by keeping their stablecoins on the platform. It is a high-interest rate for cryptocurrencies which do not fluctuate much. It is a surprising development that the company is trying to establish itself in the world of cryptocurrency lending. The company is looking for the lenders who are interested in keeping their stablecoins with Nexo. The platform included USDC, TUSD, GUSD, DAI, and PAX in the list of stablecoins. For a surprise, Tether’s USDT is not present in the list. As the digital asset has not maintained a $1 valuation from the past two weeks, it can be a reason behind the exclusion. Other than Bitcoin, Nexo also supports Ethereum, XRP, NEXO, and Binance Coin. The stablecoins or cryptocurrencies which are volatile attracts the lending service providers.
The risk behind cryptocurrency lending services is that the recipient of the loan can back out of the deal and it may happen that the recipient never refunds to the lender. We have to see how Nexo is going to handle this issue.