Nexo will use Fidelity’s asset management technology to expand its crypto loan and saving services as part of the agreement.
Nexo, a crypto lending and savings service based in the United States, has teamed up with New York City-based Fidelity Digital Assets (FDA) to attract large institutional investors to the cryptocurrency industry. Nexo will use Fidelity’s asset management infrastructure to increase its service access to institutional investors as part of the agreement. The companies will collaborate on the creation of new products such as Bitcoin-backed loans as part of the agreement. Fresh custodial layers will be added to Nexo’s current “military grade” security system to protect these massive investors.
“We’ve witnessed enormous growth in interest in digital assets from institutions in the European market, and we’re committed to delivering sophisticated solutions to match those offered with traditional asset classes,” Christopher Tyrer, Head of Fidelity Digital Assets, Europe, stated.
In recent months, a large number of investors have expressed interest in the crypto area.
Bank of America (BofA) has recognised in a study that cryptocurrencies had grown “too huge to ignore.”
According to the report, large institutional investors have spent $17 billion (approximately Rs 1,27,055 crore) into the Decentralised Finance (DeFi) ecosystem in recent years. DeFi systems are designed to provide a self-contained and decentralised alternative to financial services that are currently regulated by banks and national or international governments.
Consecutive allegations of crypto-related organisations being hacked, on the other hand, have deterred significant investors from entering the field.
Large investors are staying away from the cryptocurrency market.
“With Fidelity Digital Assets’ bespoke custody and security solutions, our customer base will now have full access to our industry-leading credit and trading products,” said Kalin Metodiev, Nexo’s Co-Founder and Managing Partner.
This cooperation comes just a few weeks after Nexo announced a $100 million buyback campaign for NEXO, the platform’s native coin (roughly Rs. 754 crore).