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Crypto Lender Nexo plans to add security infrastructure via Ledger, a crypto wallet provider. Nexo has announced a collaboration with Ledger to witness the firm employ Ledger Vault to secure $4 billion in cryptocurrency holdings. Nexo has selected to leverage Ledger Vault, a service provided by the hardware wallet manufacturer Ledger. The SaaS solution offers digital asset custody to financial institutions and expert investors by guarding their cryptocurrencies.
Moreover, Nexo has $4 billion in AUM, some of which are taken care of by other services. Ledger Vault extends insurance up to $150 million, which will bring Nexo’s total insurance coverage to almost $375 million. It intends to increase its coverage surpassing $1 billion in 2021. Nexo is a digital asset services company. Its loans operate a little similar to those at BlockFi or Celsius.
Nexo offers interest on 17 Cryptocurrencies
Further, it provides consumers with fiat or coins in exchange for crypto collateral. It also mints native token, NEXO. Its current valuation is $1.70; it’s the 58th-largest cryptocurrency by market capitalization. Nexo grants interest on 17 cryptocurrencies. Consumers can receive interest in the asset that they deposit. Crypto investors can also acquire fiat against their cryptocurrency deposits or leverage Nexo’s exchange between fiat and cryptocurrencies. The service also grants a credit card, which is in early access. Users will earn a 2% cashback on all transactions, paid out in Bitcoin or Nexo (NEXO).
Earlier, Nexo introduced services like an internal exchange and considered launching prime brokerage and commercial banking services. Nexo’s co-founder Antoni Trenchev says that Nexo also intends to become a full-fledged bank. Moreover, the new internal exchange will allow its users to swap within various assets from their wallets and will enable them to exchange the collateral. Another business model is a Nexo Mastercard, which will be restricted to Europe initially.