NEXO, a new cryptocurrency backed loan service, hits the market with a bang!
NEXO is the World’s First SEC-compliant dividend-paying asset-backed security token. It is backed by the underlying assets of Nexo’s loan portfolio. Nexo is powered by a leading FinTech group, Credissimo, which has over 10 years of experience in the online credit industry.
The team has some great advisors like Trevor Koverko, co-founder of Polymath, and Michael Arrington, Founder of TechCrunch. They have also partnered with Deloitte to provide continuous internal audits.
How it works
Clients who transfer cryptocurrency to a Nexo wallet have immediate access to an instant loan. The credit can be accessed through a Nexo Credit card.
Once the borrower repays the loan, the cryptocurrency is made available to them again. The loan can be paid back in fiat, cryptocurrency or the Nexo tokens. Paying the debt down with Nexo tokens provides the users with a discount on the interest. Another option is to sell the cryptocurrency that was used for the collateral of the loan.
A borrower’s credit limit is based on the market value of their assets, meaning if the price of the asset goes up, so does their available credit.
People who hold Nexo tokens will receive a dividend.
“receive passive income in the form of 30% dividends from the company’s net profits that NEXO Token holders are entitled to.” according to a Medium article by Nexo.
The generation of a passive income may make this a popular token amongst investors.
Nexo launched its Live platform/Product on April 30th – even before hitting the exchanges – that is something that is rarely seen in the crypto world. It is currently only available on IDEX. Their roadmap states that more exchanges will be coming May 10th. The company also has plans to integrate more fiat currencies and cryptocurrencies to their platform I the coming months. Their credit card is set to launch in July.
We are excited to see what the future will bring for Nexo and what other innovations they will bring to the marketplace.
Images courtesy of nexo.io