Credit Lines and Digital Securities
In a recent announcement, Nexo and Securitize have stated the formation of a new partnership. This entails Nexo incorporating the DS-Protocol into their services.
The DS-Protocol refers to Securitize’s solution for a lifecycle management of digital securities. By incorporating this into their platform, Nexo gains the ability to offer collateralized loans, backed by these tokenized assets.
While many look towards secondary trading markets as the solution for illiquidity, this implementation offers token holders another means of accessing capital on a whim. In this instance, however, token holders do not need to forfeit ownership of their assets – they simply need to pay interest for the luxury of being issued a loan.
Nexo touches on this, in their announcement, by stating, “This collaboration with Securitize brings the addressable market for the Nexo enterprise to a whole new level as it creates the possibility for clients to borrow against their real estate, equities, bonds, etc.”
In their announcement, Nexo relays a recent quote given by Securitize president, Jamie Finn. During the podcast ‘Borderless Crypto’, he stated,
“I think our integration with Nexo will work really well because it allows me to do something that I can’t normally do without a whole bunch of other parties involved. To be able to go to a website, take my security, lock it up, borrow some money against it, all on my own, without another human involved, is amazing.”
Nexo Managing Partner, Antoni Trenchev, also took the time to comment on this partnership. He stated,
“We are excited to be expanding instant liquidity opportunities beyond cryptocurrencies in to traditional asset classes that are being brought on the blockchain with the help of our partners from Securitize.”
Nexo is based out of Zug, Switzerland – commonly referred to as ‘crypto valley’. From here, Nexo provides its clients with crypto-backed loans.
Since their launch, Nexo has gone on to process over $1 billion in loan requests for a plethora of users. This expansion to support digital securities will help these impressive number grow.
Securitize is a young company that caters to the world of digital securities, through a variety of blockchain based solutions. The company is headquartered in San Francisco, and was founded in 2017 by Carlos Domingo, Jamie H. Finn, and Tal Elyashiv.
In Other news
Securitize has become a constant in our newsfeed. They have done this by attaining greater levels of adoption than most, while continually establishing strategic partnerships. Here are a couple of recent articles, highlighting what Securitize has been up to, as of late.