Ted Cruz (R-TX) – a crypto-supportive Republican senator – believes a US Central Bank Digital Currency (CBDC) is likely to become a reality. The politician believes both the Federal Reserve and the White House currently want one, and that the Democratic party won’t vote against its issuance. In an interview published by What Bitcoin Did on Friday, Cruz discussed the current political climate surrounding crypto. In general, the senator believes Democrats are more opposed to the industry than Republicans, due…
Even with all the crypto world advancements, there haven’t been many significant crypto credit facilities. However, if we are going to advocate for the mass adoption of credit facilities, we need to ensure that we have similar services as the traditional financial system provides, only with some advantages.
Fortunately, Nexo, a leading FinTech group, has taken upon itself to provide the world’s first instant crypto-backed loans. Thanks to this platform, anyone who has some crypto assets benefits from it without selling the assets. Besides, Nexo offers a safe and secure environment for crypto lenders and borrowers.
How does the platform work, and what are the key features? Like anything else in the crypto world, you must have all the details before making any significant investments. In this article, we will delve into the platform’s details and give you all the reasons why you should take a moment to check it out.
What is Nexo?
Nexo’s origin story stems from Credissimo, a leading FinTech in Europe that was founded in 2007. Credissiomo has been using innovative technologies for over a decade to provide e-commerce financing, instant online consumer loans, and bill payment services. Credissimo’s long term in service, therefore, gives Nexo credibility and assures the platform’s users of its genuineness. Besides, Deloitte audits the platform, which further cements its legitimacy.
Credissimo launched Nexo to solve the issue of financing in the emerging digital economy. The revolutionary product came to be in 2018 and quickly made a name for itself as the world’s largest and most trusted crypto lender. Since its inception, the platform now boasts of over $1.5 billion processed for over 550,000 users. Nexo also boasts of 45 supported currencies in over 200 jurisdictions.
The Current Problem With Lending and Borrowing Digital Assets
After all the digital economy developments, it’s alarming to see that there is a gap when it comes to borrowing and lending of digital assets. For starters, although investors around the world hold digital assets that are worth billions, these assets remain idle and in holding. Liquidifying the assets, therefore, becomes a challenge. Depending on the asset class, the entire process could take several days or even a couple of months.
Another significant challenge is that investors cannot leverage their assets without having to sell them. Often, this will involve losing ownership of assets with proper upside ownership to meet short term liquidity. Even then, when investors decide to sell their digital assets, they incur additional exchange and withdrawal fees. Besides, investors also become liable to capital gain tax. Therefore, selling short-term liquidation assets is an expensive and inefficient venture that most investors would rather skip altogether.
Finally, borrowers and lenders have to go through cumbersome credit checks when trying to access unsecured financing. This often results in lower credit scores for them. Because digital exchange services are often P2P exchanges, the lack of trust and transparency from both sides becomes a primary hindrance as well.
How Does Nexo Help Solve These Challenges?
The Nexo platform makes it possible to borrow and lend digital assets by overcoming these challenges. Nexo users have to place their digital assets in a Nexo account, which then unlocks their value. Users can then obtain an instant loan in any of the supported fiat currencies. In doing so, users get quick access to cash or cryptos through bank transfer or using the Nexo credit card. Regardless of what asset class they have, users don’t have to worry about the slow liquidation process before accessing their money.
Clients don’t need to sell their assets to borrow some instant money and retain their assets’ full ownership. Therefore, they get to keep benefitting from the value appreciation of their assets during the borrowing period. They don’t incur any tax liabilities or hidden exchange fees, making the Nexo solution very cost-efficient.
Additionally, the platform eliminates the need for cumbersome credit checks since it offers instant crypto loans, and clients don’t need to worry about the deterioration of their credit scores. Nexo also uses transparent blockchain loan contracts, which ensure transparency during the borrowing and lending of digital assets.
Nexo Products and Services
3. Instant Crypto-Backed Loan
Giving instant crypto-backed loans is Nexo’s primary focus. Clients have the option of receiving same-day or next-day loans through SWIFT, ACH, or SEPA. Clients can choose to have the loan deposited in their personal or business bank accounts. Here’s how the loans work:
- Deposit your crypto assets into your NEXO account. Renowned custodian BitGo ensures the security of your assets.
- The fully automated system ensures that you receive an instant, flexible credit line without undergoing any credit checks.
- Spend the money instantly using your card or withdraw it to your bank account.
- Make repayments at any time and have the interest debited from your available limit.
2. Nexo Card
The platform issues its users with a Nexo card that gives them access to their credit line from wherever they are in the world. The card provides users with instant cashback on all purchases and flexible repayment methods. Users can also choose to repay in local currencies and apply for free additional virtual cards.
The Nexo card works together with the Nexo mobile app available for both iOS and Android users. You can freeze and unfreeze your card at any time from the app and monitor your transaction in real-time and in full detail. Users also get to enjoy zero fees on all purchases.
3. Nexo Tokens
Nexo is offering tokens to increase awareness and gather support from the crypto community. The platform is letting its members participate transparently and directly in the Token Sale. Through this, Nexo will boost the funding for instant loans and meet the crypto community’s overwhelming demand.
The Nexo token complies with the ERC-20 and is built as a smart contract on the Ethereum blockchain. It comes with some lucrative utility and security features to bring more crypto enthusiasts on board.
Borrowing and lending digital assets have been quite the challenge over the few years of their existence. However, platforms such as Nexo looking to close the gap may be the next massive thing in the crypto world.
If you are looking for some short-term liquidity, you don’t have to sell your digital assets. With Nexo, you have instant access to crypto-backed loans that you can also withdraw to your bank account. Therefore, check out Nexo, which can help you should you need an instant loan. Besides, since you don’t sell your digital assets, you enjoy appreciating the assets during the borrowing period. Sounds pretty cool, right?