US-based crypto lending and savings firm Nexo has partnered with New York City-based Fidelity Digital Assets (FDA) to engage large-scale institutional investors to enter the cryptocurrency space. As part of the deal, Nexo will use Fidelity’s asset management infrastructure to expand its service reach to institutional investors. Under the deal, the companies will work on developing new products such as bitcoin-backed loans. To protect these huge investors, new custodial layers will be added to what is claimed to be Nexo’s existing “military grade” security system.
Christopher Tyrer, Head of Fidelity Digital Assets Europe, said: “We have seen a tremendous increase in interest in digital assets from institutions within the European market and we are looking to implement sophisticated solutions to match those available with traditional asset classes. Committed.” Comment on development.
Heavy investors have been showing an inclination towards the crypto sector in recent times.
Recently, a report good Bank of America (BofA) also acknowledged that cryptocurrencies have become “too big to ignore”.
In the report, BofA said large-scale institutional investors invested $17 billion (about Rs 1,27,055 crore). Decentralized Finance (DeFi) ecosystem in recent years. DeFi systems aim to provide an autonomous and decentralized alternative to financial services that are otherwise regulated by banks and national or international administrations.
Frequent reports of breaches from crypto-related firms have kept sizable investors from entering the crypto space.
“Our customer base will now make full use of our industry-leading credit and trading products, relying on Fidelity Digital Assets’ already custodial and security solutions,” said Nexo co-founder and managing partner Kalin Metodiev.
The partnership comes weeks after Nexo announced the launch of a buyback program for Nexo, a $100 million (about Rs 754 crore) native token for the platform.