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New Platform Nexo Offers Instant Crypto Assets-Backed Fiat Credit Line

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Tue, 05/01/2018 - 23:27
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  • Nexo allows cryptocurrency holders to turn crypto-assets into a fiat currency credit line instantly.

Cover image via U.Today

Swiss-based firm Credissimo, launched Nexo, a platform for instant crypto-backed loans which allows investors to gain fiat currency without the need to sell their coins, Tuesday.  

Now investors and businesses can get to access instant cash while retaining ownership of their digital currency holdings, the company says.

The platform works by allowing users to deposit cryptocurrencies into a secure Nexo wallet, where assets are held securely with BitGo. Clients receive a fiat currency credit line based on their digital assets which they can start using instantly. Clients can also choose to repay the entire amount any time without incurring any additional fees, the company says.

Nexo addresses one of the most significant pain points in the crypto asset owners who are required to sell their highly valuable cryptocurrency assets to reap the benefits of their holdings.

Antoni Trenchev, a managing partner of Nexo, says:

"Seventy-one percent of investors have much higher price targets for various cryptocurrencies and plan to hold their digital assets as long as possible. Nexo is giving them the means to spend the value of their crypto without having to sell it. This is important for the entire community, as our product aims to provide a meaningful mechanism for credit facilitation."

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Nexo users may also decrease tax liabilities since they borrow against their crypto assets rather than selling them which exposes them to capital gains taxes the company says.

Nexo is backed by European fintech firm Credissimo and has been supervised by banking and financial services regulators for more than a decade. The NEXO Dividend Token is SEC-compliant and asset-backed, the company says.

About the author

Urvashi Verma is a Chicago-based reporter who writes about the convergence of technology and business. She is interested in fintech, digital currencies, blockchain and currency markets. Urvashi formerly worked with the Times of Israel covering Israel's booming tech industry including Start-Up Nation, venture capital investment, and crowd-funding platforms.

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