Binance Coin (BNB) Accepted For Nexo Crypto-Backed Loans Collateral
Nexo has announced that Binance Coin (BNB) holders are able to use their coins as collateral to obtain instant loans from the Nexo platform thereby strengthening its role as a catalyst for the growth of the blockchain ecosystem.
Nexo helps crypto investors unlock the value of their wealth by providing them with instant loans in USD, EUR and USDT (Tether) against their crypto-holdings.
By pledging their assets, rather than selling them, clients obtain immediate liquidity and keep the upside of future value appreciation of their cryptocurrencies and tokens. The concept has quickly gained an enormous following amongst crypto miners, hedge funds, companies that have conducted ICOs and many more. Investors of all sizes and nationalities have found various reasons why Nexo is their first association with crypto-backed loans.
Binance Coin (BNB) is the latest addition as a collateral option on the Nexo Platform, with new ones being integrated on a regular basis.
The BNB And Nexo Era
Prior to adding BNB, users already borrowed substantial amounts staking Bitcoin (BTC), Ethereum (ETH) and the platform's native currency, the NEXO Dividend Token. The latter gives borrowers a 50% discount on their interest, all the while entitling them to a 30% dividend from the company's net profits.
BNB was launched by Binance raising $15 million through an initial coin offering (ICO) in July 2017. Consequently, Binance went on to become one of the largest cryptocurrency exchanges with a daily trading volume of over $1 billion.
This has turned BNB into one of the world's top cryptocurrencies with a market capitalization of over $1.45 billion at the time of publishing. The coin has proven remarkably resilient, weathering multiple storms and outperforming Bitcoin in bear markets.
According to Antoni Trenchev, Nexo's Managing Partner, BNB's inclusion in the Nexo growing list of collateral options expands the choice for Nexo clients, adds further utility to Binance's coin (BNB) and eases selling pressure. The ultimate goal for Nexo is to create value for the community and the wider crypto ecosystem. Accepting BNB is another step in this direction.
Nexo Becomes The Main Driving Force In The Crypto FinTech Industry
Nexo is gaining traction as a main driving force in the Crypto FinTech industry, by opening up real-world applications for and fostering mass adoption of digital assets. The company has received more than 40 requests from different blockchain players who want their tokens to be accepted as collateral on the Nexo Platform . The interest demonstrates the scale of pent-up demand for Nexo's products and illustrates Nexo's growing importance as a lending bridge between the crypto ecosystem and the cash economy.
Nexo raised $52.5 million in an 11x oversubscribed private coin sale earlier this year. It launched its Nexo Platform in April 2018, becoming one of the few blockchain companies in the world with a live product shortly after its offering.
Nexo has already started issuing loans and several prospective partners have expressed interest in providing further financing for Nexo to give out loans backed by their tokens.