Fidelity Digital Assets Takes Nexo’s Crypto Lines of Credit in New Partnership

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Crypto lender Nexo has announced a new collaboration with institutional crypto custodian Fidelity Digital Assets for a suite of products aimed at providing institutional investors with more gateways to crypto.

Fidelity Digital Assets is the blockchain arm of Fidelity Investments, the Boston-based asset management company that manages more than $ 7 trillion in client assets.

The two companies have reached an agreement to develop a product line that will extend Nexo’s lines of credit and Fidelity’s industry-leading secure crypto brokerage to institutional clients.

Nexo Co-Founder and Managing Partner Kalin Metodiev said in a prepared statement that “working with Fidelity Digital Assets is the final step in our quest to deliver a comprehensive institutional platform and integrate traditional financial firms into the ecosystem of digital assets ”.

The crypto platform allows users to borrow money for crypto at different rates. Likewise, users can earn up to 20% interest on assets like Bitcoin, Tether (USDT), Ethereum, and many more.

Christopher Tyrer, Head of Fidelity Digital Assets in Europe, said the partnership is part of “considerable growth in interest in digital assets from institutions in the European market”.

Nexo, loyalty in recent news

Last month, Nexo acquired a stake in digital securities broker Texture Capital as part of a “strategic move” that would allow it to potentially use Texture’s stockbroker’s license, and its registration in each. State, to serve American citizens.

Nexo also recently announced a $ 100 million buyback program, allowing the company to periodically buy back its native NEXO token on the open market.

After a vesting period of 12 months after the repurchase, the company can use the tokens for strategic investments through token mergers, or pay interest to clients who receive their daily returns in NEXO.

The buyback program will of course help increase the value of NEXO, which is currently the 89th largest cryptocurrency, with a market cap of $ 1.41 billion. The token is currently trading at $ 2.52, up 24.9% in the past 24 hours, according to CoinGecko.

Fidelity Investments grabbed the headlines by launching the fifth exchange-traded fund (ETF) on the spot market in Canada earlier this month, making it the largest asset manager to launch a Bitcoin ETF. nowadays.

The fact that the firm launched it in Canada due to the reluctance of the U.S. Securities and Exchange Commission to approve a single ETF is likely an embarrassment, Bloomberg ETF analyst Eric Balchunas tweeted.

It should be embarrassing to the SEC that one of the biggest names in investing in the United States is forced to go up North to serve its clients. But that probably won’t matter.

– Eric Balchunas (@EricBalchunas) November 30, 2021

So while Nexo and Fidelity both separately expand the retail investor market, today’s news offers a similar promise to institutional investors.

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