Crypto Lending Platform Nexo Launches Prime Brokerage Services

Nexo, a London-based regulated financial institution for digital assets, has launched Nexo Prime, its proprietary prime brokerage platform targeted at institutional, corporate and high-net-worth investors (HNWIs).

The company said the platform will give investors “all the tools necessary to trade, borrow, lend and securely store their digital assets in a single product.”

Nexo Prime, which was launched on Wednesday, will serve clients across the world around-the-clock, the lending institution added.

Explaining the rationale behind the development of the platform, Kalian Metodiev, the Co-Founder and Managing Partner of Nexo, said the industry was getting an all-time-high demand for digital assets among institutional and corporate clients.

“Clients entering the space demand a sophisticated, all-in-one, institutional-grade platform, and that’s exactly what we provide them with Nexo Prime,” the Nexo Chief Financial Analyst added.

Yasen Yankov, the Vice President of Development for Nexo Prime, who said the company was excited to unveil the platform, disclosed that the company had carefully built out and incubated the new platform over the past 18 months with a core client group.

“We are today, already a trusted partner to leading trading firms, hedge funds, family offices and OTC desks. We provide our clients with access to deep diversified liquidity pools, lending to meet any need, the best prices in the market, efficient low-latency execution and an industry-leading custody solution in partnership with BitGo, Fireblocks, Ledger Vault and Fidelity Digital Assets, all combined with $375 million in custodial insurance via Lloyd’s of London and Marsh & Arch,” Yankov added.

Next Prime’s Features

According to Nexo, Nexo Prime comes with a set of features to meet the trading, custodial and lending needs of institutional, corporate and HNWI investors.

For trading purposes, the firm said the Nexo Smart Routing System was designed to enable cost-effective execution of orders “smoothly and reliably with competitive trading fees.”

Among others, the new platform’s trading infrastructure will help clients “access diversified liquidity, aggregated from the world’s leading exchanges, liquidity providers and select market makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term.”

For custodial services, the company noted that Nexo Prime combines industry-leading solutions from BitGo, Fireblocks, Ledger Vault and Fidelity Digital Assets.

“All digital assets are stored in military-grade Class III vaults, have instant access to funds at all times for trading and stay protected with $375 million in custodial insurance via Lloyd’s of London and March & Arch,” Nexo explained.

For lending, the firm observed that Nexo Prime’s crypto lending Crypto Lending The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market Read this Term platform was built to provide clients with liquidity on demand, whether it is needed for margin trading or an over-the-counter loan.

Through the new platform, clients can “get access to institutional financing options for cryptocurrencies, stablecoins and fiat; scale trading strategies while preserving the value of crypto assets; and add extra leverage to a portfolio by borrowing at the best market rates.”

Nexo and the Future of Money

Last month, Nexo allocated $150 million for long-term investments to be made by its newly-launched unit, Nexo Ventures. The unit, headed by Tatiana Metodieva, Nexo's Head of Corporate Finance and Investments, focuses on third-generation websites (Web3) and GameFinance crypto payments and compliance solutions.

In January, the company had partnered with Bakkt Holdings Inc. to use the latter’s warehouse to safeguard its customers’ Bitcoin and Ether holdings.

Furthermore, Nexo recently halted its interest charge on new crypto deposits for its US customers after BlockFi’s $100 million settlement with the US securities regulator.