summary: Nexo is a European fintech company that provides instant dicryptocurrency-backed loans for digital asset owners.
content: Nexo is a European fintech company that provides instant dicryptocurrency-backed loans for digital asset owners. The Nexo platform is powered by a European fintech group that has been involved in online consumer lending since 2007. The Nexo platform launched in 2017 and is based in Zug, Switzerland. History Nexo was founded by Antoni Trenchev and Kosta Kantchev in 2017. The company has raised over $52.5 million in funding. Around early August 2020, Nexo announced that its token holders would be paid over $6.1 million in dividends on August 15, 2020. This is more than double what they paid out the year prior ($2.4 million). The payout consists of 30% of the company's net profits for the period between June 30, 2019, and June 30, 2020. In a statement, Antoni Trenchev, co-founder and managing partner of the company, explained, Our profit unequivocally showcases Nexo’s stellar development and staunch resilience to what are perhaps the toughest market conditions since the 2007 economic crisis, Overview The NEXO Token is backed by the underlying assets of Nexo’s loan portfolio. NEXO Tokens payout 30% in dividends from the company’s profits each month to NEXO Token Holders. The tokens also offer additional utility features such as discounted interest rates on crypto-backed loans and are accepted as collateral on the Nexo Platform. Notable Clients In April 2019, Brock Pierce used more than three million dollars in bitcoin as collateral to purchase a 1.2 million renovated chapel-turned-home in Amsterdam. This became Nexo's first-ever crypto-backed mortgage. Chainlink Collaboration In early July 2020, it was announced that Nexo and Chainlink were collaborating in an effort to continue and enhance the adoption of digital assets. Chainlink is joining with Nexo by incorporating their oracle system in Nexo's trading and lending procedures, in turn improving the efficiency and security of the platform. Nexo's platform will also benefit from the partnership with the increase of both greater loan volumes and custody of funds. On the collaboration, Nexo Co-founder Antoni Trenchev stated, “Nexo’s mission is to bridge the gap between digital and traditional finance and our developing collaboration with Chainlink brings us a step closer to achieving this. We are very much on the same page — both in terms of how our respective services currently align, and in terms of our shared vision for a digital, decentralized future of finance. We’re thrilled to have them on board.” Chainlink Co-founder Sergey Nazarov also commented on the benefits of the union of Nexo and Chainlink, stating, “We’re excited to bring Chainlink’s secure and reliable oracle solutions to Nexo’s popular lending platform to enable users to independently verify on-chain the interest and collateralization rates they should receive. This allows Nexo to provide additional trust and transparency to their large user base.”