Nexo

About Nexo

Nexo is a leading regulated financial institution that provides instant cryptocurrency-backed loans and savings products. Founded in 2018, Nexo has rapidly grown to serve over 3 million users across 200+ jurisdictions. Nexo aims to drive the adoption of digital assets and blockchain technology by increasing liquidity and promoting financial inclusion.

Overview of the Nexo Platform

The Nexo platform is built on blockchain technology and provides users with a secure way to access the value of their crypto assets without having to sell them. Users can obtain instant credit lines by collateralizing certain cryptocurrencies or earn daily interest on their digital assets.

Nexo currently supports lending and exchange services for 16 different cryptocurrencies including Bitcoin, Ethereum, Litecoin, XRP, and more. The company plans to progressively expand the list of supported assets.

The platform uses bank-grade security measures and advanced propriety cybersecurity framework to ensure asset safety and data privacy. Nexo is also insured by recognized insurance companies like Lloyd’s of London.

Token NEXO

NEXO is the native token that powers the Nexo platform. It is an ERC-20 utility token built on the Ethereum blockchain and plays a key role within the ecosystem.

NEXO tokens enable users to access products and services at more favorable rates. Token holders receive up to 12% interest per year on NEXO, get cashback on loan repayments, and qualify for higher loan-to-values.

The total supply of NEXO is 1 billion, out of which about 560 million tokens are currently in circulation. As the platform grows, increased utility demand for NEXO should drive its value.

Key Features and Benefits of Nexo

1. Instant Crypto Loans – Users can borrow against their crypto collateral without credit checks. The entire process from application to receiving funds takes only a few minutes.
2. High Loan-to-Value (LTV) ratios – Nexo offers credit lines up to 90% of the crypto collateral value for some assets. This allows maximizing capital efficiency.
3. Flexible Repayment Options – Users only need to pay the interest during the term and can repay the principal anytime or on maturity. Interest is charged per days used.
4. Earn Interest on Crypto – Nexo allows customers to earn up to 12% APR by lending their idle digital assets to borrowers. Interest is paid out daily.
5. Regulatory Compliance – Nexo maintains licenses and registrations in various jurisdictions to provide compliant, audit-proof services globally.
6. Military-Grade Security – Crypto assets on Nexo use enterprise-grade security systems such as BitGo cold wallets and $375M insurance from Lloyd’s.

Nexo’s Lending and Borrowing Services

Nexo enables cryptocurrency holders to instantly borrow cash without selling their assets. They can obtain credit lines by staking collateral that include Bitcoin, Ethereum, USD Coin, Litecoin, XRP and more.

The platform also allows depositors to earn substantial passive income on their crypto and stablecoin holdings. Users who lend assets to others can earn up to 12% APR, paid out daily.

Nexo currently supports instant variable loans as well as fixed-term borrowing options. The variable loans can be partially or fully paid back anytime. Fixed loans have terms of 3 or 12 months with a definite repayment schedule.

Nexo offers flexible repayments – users only need to cover the interest for the duration of the loan, and repay the principal either during its term or at maturity.

Interest Rates and Fees

Nexo offers competitive rates determined by the type and percentage of assets collateralized. For large collateral amounts, clients may even get custom VIP rates.

Variable loan interest is typically around 5.9% APR but can go up to 13.9% for some crypto assets. Fixed-term loans have rates starting from 5.9% going up to 11.9%.

No application, origination, or monthly account fees are charged. The only charges Nexo levies relate to loan repayment – late installment fee of $15 dollars and minimum repayment amount.

On savings accounts, Nexo provides up to 12% interests on crypto holdings and stablecoins, and up to 6-8% on fiat currencies. Higher loyalty tiers for NEXO token holders enjoy an additional 2% bonus interest.

Nexo Card and Instant Crypto Credit Lines

Nexo offers a cryptocurrency credit card that allows customers to spend without selling their crypto. The Nexo Card is linked to the user’s credit line and provides instant access to cash.

Cardholders can spend up to 90% of their collateral limit and repay as desired. Uses are treated as loans with terms flexible up to 24 months.

The Nexo Card has no monthly or annual fees but charges a 2% processing fee on crypto credit utilization. It currently ships to over 200 countries in Europe and Latin America.

Nexo’s Security and Regulations

Nexo adheres to rigorous compliance and security standards in the fast-evolving blockchain industry. It is a regulated financial institution with licenses and registrations that allow legal provisions of services across various jurisdictions.

Safety and due protection of assets remains the organization’s first priority. Nexo stores crypto funds in cold wallets with enterprise-grade security. It also carries $375M insurance protection from Lloyd’s and maintains an ISO/IEC 27001:2013 certification for information security.

For transparency and legal accountability, Nexo is regularly audited by Armanino LLP, one of the largest independent accounting firms in the US.

The Nexo Dividend Program

The Nexo Dividend program shares 30% of the company’s profits with NEXO token holders in the form of stablecoin payouts. Investors who hold NEXO receive regular dividends as additional passive income and capital gains.

To be eligible for dividends, users need a minimum of 10,000 NEXO tokens in their accounts. The ex-dividend date is typically early August. Payouts are sent out in September as USDC or USDT directly to token holder’s Nexo accounts.

Since 2018, Nexo has distributed over $50 million as dividends to investors. The latest Nexo Dividend was $20M, which translated to a 16.7% dividend yield – a record in blockchain finance.

The Future Outlook for Nexo

As digital assets continue to gain mainstream traction, blockchain lending has massive growth potential in the coming years. Nexo is uniquely positioned to capture this market due to its first-mover advantage, compliance-driven approach and commitment to innovation.

Company plans include expanding supported cryptocurrencies, offering more advanced trading capabilities, introducing mobile apps across platforms like iOS, Android and Huawei devices as well as releasing crypto cards globally.

With its rising base of over 3 million users, Nexo is cementing its place as the leading pioneer of digital asset-based lending and financing services.