Monday, January 17

Fidelity and Nexo want to offer cryptocurrency credit lines to institutions | Bitcoin Portal

Crypto lender Nexo announced a new collaboration with crypto institutional custodian Fidelity Digital Assets for a set of products aimed at providing more “on-ramp” platforms (which convert fiduciaries to crypto) for institutional investors.

Fidelity Digital Assets is the blockchain arm of Fidelity Investments, the Boston-based asset management company that manages over $7 trillion of customer assets.

Both companies have entered into an agreement to develop a range of products that will extend the credit lines of Nexo and Fidelity’s state-of-the-art crypto-secure brokerage to institutional clients.

Kalin Metodiev, co-founder and managing partner of Nexo, said, “Working with Fidelity Digital Assets is the latest milestone in our mission to provide a complete institutional platform and integrate traditional finance companies into the cryptoactive ecosystem.”

The crypto platform allows users to borrow crypto with cash at a variety of different rates. Similarly, users can earn interest of up to 20% with assets such as bitcoin (BTC), tether (USDT), ether (ETH), among others.

Recent news from Nexo and Fidelity

In November, Nexo acquired a stake in digital securities brokerage Texture Capital in a “strategic move” which will possibly allow you to use Texture’s brokerage license and state-by-state registry to serve citizens.

Nexus also announced a $100 million buyback program, allowing the company to periodically repurchase its native NEXO token on the open market.

After a 12-month vesting period after the repurchase, the company can use the tokens for strategic investments through token mergers or pay interest to customers who receive their daily earnings on NEXO.

The buyback program will help boost the value of NEXO, which is currently the 89th largest cryptocurrency, with a market capitalization of $1.41 billion.

The token is currently trading at $2.38, having risen nearly 14% in the past 24 hours, according to the website. CoinGecko.

Fidelity Investments made headlines when it launched the fifth spot index (or ETF) fund in Canada this month, becoming the largest asset manager to launch a bitcoin ETF so far.

The fact that the company launched the ETF in Canada is because the US Securities and Exchange Commission (or SEC) is reluctant to approve a single ETF probably because of some constraint, tweeted Eric Balchunas, analista de ETFs da Bloomberg.

Furthermore, although Nexo and Fidelity are separately expanding the market for retail investors, the news this Tuesday (7) offers similar promise to institutional investors.

*Translated and edited by Daniela Pereira do Nascimento with permission from Decrypt.co.





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