Nexo has teamed up with Binance Coin to offer loans similar to those in the traditional finance industry. In the new arrangement, holders of Binance Coin (BNB-USD) will be able to use the coins as collateral to access Nexo’s loans.
More coins to be added
Nexo intends to use the new partnership to increase the growth of the blockchain ecosystem. The company has started with BNB but has indicated that several other coins will be added as collateral for loans on its platform on a regular basis. The company has been a major player in advancing the adoption and use of cryptocurrencies.
Nexo specializes in assisting crypto investors to get more value from their wealth by offering quick access to loans. The loans are offered in EUR, USD and USDT (Tether) against the investors’ holdings in cryptocurrencies. The company allows crypto holders to pledge their assets and obtain loans instead of selling them. This way, investors are able to get immediate liquidity and also earn from future appreciation of their tokens and cryptocurrencies.
Attracting a lot of interest
This is a new concept in the crypto world but has already gained a lot of momentum. The program has attracted a lot of interest among hedge funds, crypto miners, as well as companies that ran successful ICOs. Many investors from different countries continue to sign up to the new service and to many, Nexo has been their first contact with the blockchain ecosystem.
Before the addition of Binance Coin, the company has been issuing investors with loans against their holdings in Ethereum (ETH-USD), Bitcoin (BTC-USD), as well as its native coin, the NEXO Dividend Token. Investors who borrow against their NEXO Dividend Token are offered a 50% discount on the loan interest. This also qualifies them to a 30% dividend on the net profit of the company.
Binance launched BNB after successfully running an initial coin offering (ICO) in which it raised $15 million. Following the launch, Binance became the biggest cryptocurrency exchange with a daily trading volume of more than $1 billion.