Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.
Table Of Contents
Nexo, a leading cryptocurrency lending platform, has announced the launch of a digital asset brokerage unit. The unit will facilitate the growing demand for cryptocurrency products by institutional and high net-worth investors.
The platform in question will be known as Nexo Prime. It will be a proprietary prime brokerage unit dedicated to institutional and wealthy investors. The unit will offer institutional investors access to the right tools needed to trade, borrow, lend and store digital assets easily and securely.
Nexo launches digital asset prime brokerage unit
Over the past year, there has been increased interest in digital asset products. The institutional and corporate demand for these items has been notably high, and this has prompted various crypto-based companies to launch well-suited products to meet this growing demand.
The co-founder and Managing Partner at Nexo, Nexo, Kalin Metodiev, noted that the growing institutional and corporate demand for digital assets was at its peak. The executive estimated that the market for digital asset prime services could increase by more than ten times over the next year.
The new unit will focus on large orders and offer competitive trading fees. The platform has been under development for more than one year, and clients will have access to crypto lending activities 24/7.
“We’ve carefully built-out and incubated Nexo Prime over the past 18 months with a core client group, and we’re excited to unveil the platform for the rest of the world to see. We are today already a trusted partner to leading trading firms, hedge funds, family offices, and OTC desks,” said Yasen Yankov, the Vice President of Development at Nexo Prime.
In this new unit, it will be possible for clients to access high-touch executions on both the spot and derivatives markets. It will also fulfill a wide range of client needs related to digital asset trading, borrowing, custody, and lending. The platform will also facilitate the cost-effective execution of trades through the Smart Routing System.
Nexo Prime is not just providing trading services to its clients. It will also focus on providing custody solutions to a wide range of partner institutions. Some of the partner firms that Nexo Prime will work with include BitGo, Fidelity Digital Assets, Fireblocks, and Ledger Blocks.
The other strategic deal that Nexo prime has made to boost the success of this product is launching custodial insurance valued at $375 million. The insurance will be launched through Lloyd’s of London and Marsh & Arch. Additionally, the crypto lending platform to be launched by Nexo Prime will provide liquidity to clients on demand. The liquidity will be available for both margin trading and an OTC loan.
Other notable developments
Nexo has been making strategic developments to boost its presence in the cryptocurrency lending sector. Last week, Nexo announced it would be integrating ApeCoin into its yield program. ApeCoin is currently one of the most-hyped cryptocurrencies, and it is affiliated with the Bored Ape Yacht Club (BAYC) NFT collection.
Nexo has offered an ROI of up to 12%, to be determined by the loyalty tier of the customers. The platform is also launching a new fund valued at $150 million that will be used to invest in projects dedicated toward Web3. The fund will support Nexo ventures to support Web3, decentralized finance (DeFi), non-fungible tokens (NFTs), GameFi, metaverse, compliance, trading, and payment services.
Nexo also announced a partnership with Bakkt Holdings earlier this year. Through this deal, Nexo will be a digital asset company listed on Nasdaq, and it will provide custody services for Nexo’s Bitcoin and Ethereum holdings through the Bakkt Warehouse, which is the regulated custodian for the firm.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.