Technology

World’s 1st instant crypto-backed loans provider, Nexo, becomes TrueUSD lending partner

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Nexo, the world’s first instant crypto-back loans provider, reveals the fruits of its strategic partnership with “the company that is restoring confidence in the stablecoins space,” TrustToken, by becoming a TrueUSD lending partner.

Backed by TechCrunch founder Michael Arrington, Nexo provides instant loans without requiring credit checks or the time delay that manual approval processes require.

Nexo allows its clients to access cash conveniently anywhere around the world via bank transfer, cryptocurrency or the Nexo credit card and to seize investment opportunities or meet liquidity needs immediately.

nexo crypto-backed loan
Antoni Trenchev

“We have had people borrow for all sorts of purposes from buying a car and going on a vacation to purchasing a new home, which are pretty significant events in people’s lives,” said Nexo Co-Founder Antoni Trenchev in a recent article on Forbes.

On Wednesday, the “world’s most advanced crypto lender” announced that it is an official TrueUSD lending partner through a strategic partnership with “the company that is restoring confidence in the stablecoins space, TrustToken.”

Read More: Vault to launch world’s 1st USD-pegged, redeemable stablecoin backed by gold

TrueUSD is now available both as a collateral and repayment option for Nexo’s instant crypto loans, making Nexo the official TrueUSD lending partner.

Nexo clients can deposit TrueUSD and borrow against it with a 95% Loan-to-Value (LTV) ratio which provides an additional utility feature for the stablecoin. TrueUSD can further be used to fund existing loans, with no price risk for the customer.

The two companies are among the rare-breed of blockchain companies to have delivered working solutions to the real problems that plaguing the crypto community.

Read More: Insolar’s BaaS platform will ‘help any organization profit from blockchain tech’

Crypto-backed Loans

Powered by Credissimo, a FinTech company that has been providing financial innovation since 2007, Nexo has been providing instant loans to millions of people across Europe.

By applying blockchain technology, Nexo is Credissimo’s answer to solving the lack of financing for the new digital economy.

nexo crypto-backed loan
Nexo Business Model

With Nexo, clients obtain an instant loan in fiat currency (EUR, USD, etc.) or cryptocurrency by placing their digital assets in an Nexo Wallet. They retain 100% ownership of their digital assets, and without the need to sell them, the borrowers now keep the full benefit from the assets’ value appreciation.

Ownership of digital assets is secured and guaranteed by transparent blockchain loan Repo for Digital Assets contracts while crypto оverdrafts are an affordable, flexible and efficient solution that also do not incur any tax liabilities or exchange and hidden fees.

In simpler terms, Trenchev told STOCheck that getting a loan on Nexo “is really simple – you sign up on the platform with a few clicks. Then deposit the crypto that you would like to use as collateral. You can choose between BTC, ETH, BNB Coin, XRP and NEXO (10 more collateral options are coming by the end of the year).

“Once the deposit is confirmed on the network you get your instant credit line and can withdraw the desired amount to your bank account. The Nexo credit card is coming very soon and has got a lot of people excited.”

nexo crypto-backed loan

For investors, the NEXO Token is the World’s First US SEC-compliant Asset-backed Token and is backed by the underlying assets of Nexo’s loan portfolio.

NEXO Tokens are a safe haven as they provide passive income in the form of 30% from the company’s profits, distributed monthly to NEXO Token Holders.

The tokens offer additional utility features such as discounted interest rates on the Nexo Instant Crypto-backed Loans and are also accepted as collateral on the Nexo Platform.

Disclosure: This article includes a client of an Espacio portfolio company

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Tim Hinchliffe
Tim Hinchliffe is the editor of The Sociable. His passions include writing about how technology impacts society and the parallels between Artificial Intelligence and Mythology. Previously, he was a reporter for the Ghanaian Chronicle in West Africa and an editor at Colombia Reports in South America. tim@sociable.co