Blox works with some of the cryptocurrency industry’s most recognizable brands and companies, and for this week’s Customer of the Week – we want to highlight the leading regulated financial institution for digital assets – Nexo!
We had a chance to speak with co-founder Anthony Trenchev of Nexo. He shared some information on the company and how they use the Blox platform for their crypto accounting and finance operations.
What is Nexo? What does your company do?
Nexo is the leading regulated financial institution for digital assets. The company’s mission from day 1 is to maximize the value of digital assets by offering tax-efficient ‘Instant Crypto Credit Lines’, high-yield ‘Earn Interest’ products and ‘Send & Pay’ capabilities for our clients, while enjoying the $100 million custodial insurance and military-grade security of the Nexo Wallet. Since raising $52.5 million in 2018, Nexo has processed $1+ billion in 40+ fiat currencies for 500,000+ users across 200 jurisdictions.
Tell us about yourself and your role at the company.
Antoni Trenchev is co-founder and managing partner at Nexo, the world’s leading instant crypto credit lines provider. Prior to catching the blockchain bug in early 2013, Antoni studied Finance Law at King’s College London and Humboldt University, Berlin. Out of college, he worked in the hedge fund industry, and then turned his attention to FinTech, becoming the Chief Innovations Officer at Credissimo, the leading European FinTech group specializing in online consumer lending, which has been an early backer of the Nexo enterprise.
As a member of Bulgaria’s parliament, Antoni advocated for progressive legislation to enable blockchain solutions for a variety of e-government services, most notably e-voting and storage of databases in a distributed ledger. More recently, he was a member of the leadership team that launched the Nexo platform in April 2018, just two months after raising $52.5 million during a private token sale. Since then Nexo has processed more than $1 billion.
What does your company do? What is your core offering or value proposition?
Nexo’s primary product is the Instant Crypto Credit Lines which provide fiat credit lines using crypto as collateral with interest starting from only 5.9% APR. With this product, our customers can borrow up to 50% of the value of their crypto with no minimum repayments and no hidden origination or withdrawal fees. The minimum for loans starts at $500 and the maximum is $2 million. We currently accept multiple cryptocurrencies as collateral including Bitcoin, Ether, NEXO, Binance Coin, Ripple, Stablecoins, Litecoin, Stellar, Bitcoin Cash, EOS.
The Instant Crypto Credit Lines allow users to spend the value of their crypto without selling it which in turn eases selling pressure and makes HODLing digital assets easier. Another unique aspect of Nexo’s product is that the Instant Crypto Credit Lines are dynamic, meaning that should a client’s collateralized assets appreciate in value, their loan limit will automatically increase. Our credit lines are also markedly tax-efficient as they do not incur capital gains tax.
In March 2019, we launched our second product – Earn Interest, which allows our 550K+ user base to earn up to 8% annually in daily compounding interest on stablecoins, USD, EUR, and GBP. A few months later saw the launch of the Nexo Wallet App, which brought our Instant Crypto Credit Lines™ and “Earn Interest” products to a mobile-native environment.
Additionally, the new Nexo Card, currently live in the EEA, allows crypto holders to utilize Nexo’s Instant Crypto Credit Lines™ for instant ATM withdrawals as well as small and large purchases all over the world. Presently the Nexo Card is accepted by 40 million merchants worldwide and gives users 5% cashback when using their credit line.
What is the future for your company’s specific industry?
Blockchain and FinTech are actively enabling an array of assets to enter the blockchain space through tokenization. With only 30% of global wealth held in money, it is no surprise seeing the tokenization of assets across more and more domains. Stocks, bonds, real estate and even fine art are all being digitized and brought on the blockchain as investors are beginning to see the benefits of tokenized assets.
As the tokenization of the world progresses, more and more people will require banking services for their digital assets and Nexo’s addressable market will increase exponentially. With our platform already equipped and working with tokenized assets like digitized gold, Nexo will allow users to unlock the value of their assets across all domains.
Our services, as described above, are expertly tailored to the future demands of the financial world as well as society’s current transition towards it. However, as a truly innovative company, we do not plan to stop there.
Below is a list of goals the Nexo Team is currently hard at work to achieve:
- The launch of our Earn on Crypto product which will allow clients to capitalize on their idle cryptocurrencies.
- Relentlessly growing our Instant Crypto Credit LinesTM by adding even more collateral options, features and functionalities.
- Having Nexo’s activity as a financial institution encapsulated by an API that can be used in different businesses allows us unlimited future development. As such, we are continuously working on the software aspect of its enterprise.
- Acquiring commercial banking capabilities so that we are able to tap into the fiat deposit-taking and payments system.
- Sustaining the highest of industry standards regarding compliance with all local regulatory frameworks.
How is your company using the Blox platform?
Nexo’s user base has been experiencing continuous growth since the platform became operational in 2018. This growth has been reflected in the need for accurate real-time tracking of the crypto transactions that underpin Nexo’s services. Consequently, Nexo is leveraging Blox’s platform to enable integrated financial reporting systems that help process huge amounts of data in order to improve internal reconciliation procedures.
What challenge has the Blox platform solved for your company?
The Blox platform is an important solution in Nexo’s integrated financial reporting systems. Blox provides uniform transaction data for Nexo’s various wallets and exchanges that can be used to automate bookkeeping, as well as to use Blox as a 3rd party verification of internal system data.
Being able to see an overview of the relevant portfolios or isolate specific sets of data, gives Nexo the capacity to guarantee the accurateness of the financial data and to be able to analyze current and expected market developments in order to better serve its clients.