What is Nexo?
In essence, Nexo is an overdraft based blockchain system that allows crypto lending and makes it very easy for users to access crypto-backed loans instantly.
The company was launched in 2018, but it has started to gain most of its popularity in recent years. The slogan of the company is “Banking on Crypto.” They try to replace traditional bank services, but with crypto as the asset.
Nexo attempts and continues to promote the model, in which users can lend their crypto, as well as acquire loans for themselves. Users can earn interest on their crypto, and access instant fiat currency without relying on credit scores.
With Nexo, the user has to deposit the supported crypto into their wallet, and then choose how they want to lend it out. In other words, they choose how to make use of the peer-to-peer market.
The entire system is designed to secure liquidity automatically and with greater flexibility than a traditional bank. The network makes it easy for clients to get fiat if they want it, while still retaining ownership of their digital finances.
At this point, Nexo supports over 17+ cryptocurrencies. They are but are not limited to XRP, Cardano, Bitcoin, Ethereuum, and much more. The platform also supports NEXO token payments in EUR, ETH, BTC, and USD.
The technology that backs the Nexo blockchain supports decisive transparency at the heart of the platform. It facilitates a smooth process through the smart-contract system of Ethereum, and stores all relevant tokenized data for transactions.
Not to mention, the fact that the NEXO crypto is ERC-20, supports the idea of interest-covered securities.
What's unique about Nexo?
Nexo’s most unique characteristic is that it supports more than 45 fiat currencies and many cryptocurrencies. In addition to this, the team have been working together in the fintech industry for more than 10 years.
How safe is Nexo?
Nexo offers two-factor authentication in their app. They also offer third-party custody from Bitgo. BitGo investors include Goldman Sachs and the platform is SOC 2 Type 2 certified. BitGo Custody carries $100 million USD in insurance protection.