Type of Business: Instant Crypto Credit Lines and Earn Interest service
BitGo Services Employed by Nexo
Nexo is a leading financial institution for digital assets serving hundreds of thousands of people across the globe. With the rising interest in the cryptocurrency industry in 2016, Nexo identified a clear need for world-class crypto banking services, which until then did not exist. With their 12+ years of experience in lending automation and FinTech, the founding team decided 2017 was the right time to build the first, fully-automated banking institution to serve the needs of the cryptocurrency community, as well as the future needs of global finance. In early 2018, Nexo became the world’s first company to provide Instant Crypto Credit Lines™ in more than 45 fiat currencies across more than 200 jurisdictions.
When asked why Nexo chose BitGo, Antoni Trenchev, Nexo’s Co-founder and Managing Partner, said “The peace of mind of our customers has always been a top priority for Nexo. After conducting thorough industry research, we identified BitGo as the most secure and reliable custody provider globally. And, time has proven that we have made the right decision.”
With Nexo, clients are able to open an Instant Crypto Credit Line in a selection of fiat currencies or stablecoins by placing their digital assets in a Nexo account. They can then instantly access cash anywhere around the world via bank transfer or a blockchain withdrawal in order to meet their liquidity needs or seize investment opportunities. As of January 2020, Nexo has processed more than $1.5 billion and has enabled more than 550,000 users all over the world to securely store their digital assets.
Nexo used three stringent criteria when they were looking for a custodian: military-grade security, robust API interface, and a high-class insurance policy. According to Trenchev, “BitGo provides the industry-leading solution in all of these areas. And, the wide variety of digital assets they support made their offering even more attractive.” He continues, “In 2019, Nexo introduced Litecoin (LTC), Stellar (XLM), Bitcoin Cash (BCH) and EOS (EOS) as four new collateral options to our credit lines. The fact that BitGo supports all of these assets made the coin integration with the Nexo wallet even easier.”
According to Nexo, the advantages of using BitGo include:
Nexo uses BitGo’s custodial services and wallets primarily through API. According to Trenchev, “API is one of the major reasons we chose BitGo, since the scale of our business and the thousands of transactions we process each week can only be facilitated in an automated manner via a robust API solution.”
Nexo credits BitGo with helping them in a number of ways:
• Scalability: BitGo’s solutions enable Nexo to easily scale their custody infrastructure, which allows them to focus on building the best crypto banking products and making them accessible to individuals and institutions worldwide.
• Automation: BitGo allows for automation and scalability of addresses that enable Nexo to easily service their 550K+ user base and the 10+ digital assets they currently use for the Instant Crypto Credit Lines and Earn Interest service.
• Custody + Security: BitGo’s highly reputable and secure custodial services have also helped Nexo rapidly ramp up their institutional business offering, as they are able to leverage BitGo’s extensive balance sheet, recognized industry expertise and proprietary infrastructure to provide institutional clients with deep market liquidity, tailor-made synthetic products and yield-enhancing opportunities for both fiat and digital assets.
In essence, when Nexo users stake their cryptocurrencies and stablecoins in the Nexo account, their assets are securely stored and insured by BitGo. From there, Nexo clients can grow their wealth via the company’s Earn Interest product for stablecoins or utilize the value of their assets via the signature Instant Crypto Credit Lines.
When it comes to the future, Trenchev says, “Having our activity as a financial institution encapsulated by an API that can be used in different businesses gives Nexo unlimited future development.”
In addition to continuously updating the enterprise’s software, Nexo is looking forward to the following in 2020: