Nexo: Lending and Lending Automation is ‘Our Bread and Butter’
Nexo is a leading global lender in the digital assets industry and continues to put itself ahead of the market with key partnerships and investment strategies. The platform, which manages assets for more than 3.5 million users, recently penned one such strategic deal with BlockFills.
After contributing to the fintech firm’s series A funding round, Nexo signed on the dotted line in a collaboration effort set to see the two benefit from a “syndicated lending opportunity”.
If all works well, Nexo will tap into BlockFills’ customer base of crypto mining clients. Meanwhile, the partnership offers a chance for BlockFills to add to its balance sheet, with strategic access to institutional clients via Nexo’s prime brokerage product.
Nexo’s “bread and butter”
We reached out to Nexo for more insight into their recent collaboration and are excited to share what more the team had to say. Among other things, Nexo is committed to providing the best lending services to its clients.
Here is an excerpt of our interview with George Manolov, Business Development Executive at Nexo
1. Nexo’s partnership comes hot on the heels of its participation in BlockFill’s $37 million Series A funding round. Did that have anything to do with the resultant collaboration or were the two firms already working towards this?
Yes, the collaboration is a direct result of Nexo’s involvement in BlockFills’ series A funding round. Our teams initially connected for the investment and talks of a strategic partnership came about due to the synergistic characters of both our businesses. Nexo and BlockFills’ offerings simply complement each other naturally.
2. How soon before Nexo begins to tap into its collaboration with BlockFills- particularly on what you say is a “syndicated lending opportunity?”
Over the course of a few months now, we have discussed and assessed several opportunities for syndicated lending with BlockFills. It is a matter of days for the first ones to be closed. Our collaboration on the lending front has come very naturally and has been the focus of our partnership discussions from the very beginning, since lending and lending automation are Nexo’s bread and butter.
3. Maybe related to the above question, but you could probably go into specifics here. Is there a particular cadre of miners Nexo is targeting from BlockFills’ client base after this strategic partnership?
We are not targeting a particular cadre of miners, but rather we’re looking at the opportunity to provide financing to this specific niche as a diversification tool. Every lending opportunity is subject to a thorough due diligence process, with strict adherence to Nexo’s risk management practices and standards.
4. Can you briefly talk about Nexo’s brokerage suite Nexo Prime- what does it offer and who does it target?
With our prime offering, Nexo is entering the crypto prime brokerage space. This sophisticated new offering, Nexo Prime, is an integrated solution that provides institutions with a full suite of trading, borrowing, lending, and secure custody services for crypto assets.
In a nutshell, Nexo Prime offers advanced spot and derivatives trading, efficient margin provision and secure settlement, single onboarding to trade 300 pairs and derivatives contracts on 10+ venues, and high-frequency infrastructure with collocation next to exchanges.
Nexo Prime is powered by a complex trading engine connected to 10+ liquidity venues. Using smart order routing, customers can access the broader crypto marketplace rather than relying solely on prices from a single exchange. Nexo Prime’s advanced algorithmic trading software delivers the best commercially available performance one can acquire.
Nexo Prime can be accessed both through API or through an intuitive UI.
5. Any specific developments around Nexo’s goals for MetaFi (decentralised finance in the Metaverse)?
As digital assets, DeFi and NFTs converge in Web 3.0, Nexo aims to be a key provider of essential infrastructure in the metaverse economy. We are working in parallel on several initiatives, which will shape Nexo’s presence in the metaverse and affirm it as a true MetaFi company. However, we cannot share any specifics yet as these are confidential for the time being.
6. The crypto space has seen massive growth over the past few weeks, with institutional adoption one of the key trends. What role is Nexo playing in this regard to help crypto go mainstream?
Our efforts are focused on becoming a bridge between the cutting-edge technology and opportunity brought by DeFi and Web 3.0, and the traditional financial world.
As institutions onboard from established industries, what they really need are services that give them the personal touch and intuitive, user-friendly interface they need to benefit from the Web 3.0 ‘s financial opportunities in real-time.
There is currently a trend among large companies to dedicate entire units to “exploring the blockchain and DeFi space”. Nexo Prime, our institutional offering, and OTC Desk are all geared toward saving companies this time and effort.
We’re propelling institutional adoption by creating tools for institutions that don’t require them to be Web 3.0-native users and give them exposure to the benefits of DeFi now.