Cryptocurrency exchange provider Nexo, which specializes in borrowing and lending digital assets such as Bitcoin, Ethereum and stablecoins, said Tuesday that it has teamed up with Fidelity Investments’ digital assets division to provide institutional investors with access to digital assets through custody and lending services.
This partnership is a major step in Nexo’s plan to create a comprehensive enterprise-grade platform to help bring traditional finance companies into the digital asset space. “Our customer base will now enjoy full use of our industry-leading credit and trade products while relying on Fidelity Digital Assets’ custodial and security solutions,” said Kalin Mitodiev, co-founder and managing partner of Nexo.
Through its partnership with Fidelity Digital Assets – which will act as trustee and escrow agent – Nexo said it will expand its ability to service and enhance its expanded portfolio of assets under management, providing additional care for military-grade security infrastructure. The company added that institutional investors who hold their digital assets with Fidelity will now have the added benefit of accessing Nexo’s products, including its prime brokerage platform.
What’s more, Nexo said that collaborating with Fidelity Digital Assets to provide an enterprise-grade digital asset storage platform will also help enhance the security infrastructure.
The partnership between Nexo and Fidelity Digital Assets comes at a pivotal time in the cryptocurrency market where major investment banks and financial institutions – for years – have ramped up caution and skepticism about the potential of investing in digital currencies – to offer digital assets such as cryptocurrencies and non-fungible tokens (NFTs) as an investment class.
“We have seen tremendous growth in interest in digital assets from institutions within the European market, and we are committed to implementing cutting-edge solutions to match those available with traditional asset classes,” said Christopher Terrier, Head of Fidelity Digital Assets Europe.
London-based Nexo, which bills itself as “the world’s largest and most trusted lender in the digital finance industry,” was founded in 2018 and currently manages assets for more than 2.5 million users across 200 jurisdictions. Borrows and lends more than 40 banknotes.
With over $7 trillion in assets under management and over 1.3 million daily trades, Fidelity Investments formed its own digital asset unit in 2014 when it began researching cryptocurrencies. A year later, she started mining bitcoin, and in 2016 tested her first digital wallet and storage solution. Now offering new blockchain solutions and offerings to institutional investors.