Fidelity Digital Assets Partners With Nexo For Its Crypto Credit Lines

Fidelity digital assets partners with Nexo in order to use its crypto credit lines and joined with the high-security brokerage of Fidelity, institutions will see new crypto onramps soon. Let’s find out more in today’s cryptocurrency latest news.

Crypto lender Nexo announced a new collaboration with the crypto custodian Fidelity Digital Assets for a line of new products aimed at providing institutuional investors with more onramps into crypto. Fidelity Digital Assets is the blockchain branch of Fidelity Investments that manages more than $7 trillion of client assets. Both companies made a deal to develop a product range that will extend Nexo’s credit lines and fidelity’s state-of-the-art secure crypto brokerage to institutional clients. Nexo’s co-founder and managing partner Kalin Metodiev said that working with Fidelity Digital Assets is a huge milestone for the company is offering an institutional platform to onboard traditional finance companies into the digital asset space.

SEMI-SHOCK: Fidelity launching a spot bitcoin ETF in Canada this week. Didn't know about this. Will easily be the biggest asset manager to date with a bitcoin ETF. pic.twitter.com/H2XJRBY3O6

— Eric Balchunas (@EricBalchunas) November 30, 2021

The crypto platform allows users to borrow cash against crypto at different rates and also users are able to earn up to 20% interest on assets such as Tether, bitcoin, Ethereuma, and others. The head of Fidelity Digital Assets in Europe Christopher Tyrer said that the partnership comes at a time of growth of interest in digital assets from institutions in the EU market. Fidelity Digital assets partners with Nexo a month after Nexo acquired a stake in the broker-dealer Texture Capital that allows the company to make use of Texture’s broker-dealer license and its registration in every state for the US citizens.

Nexo also announced a $100 million buyback program enabling the company to repurchase the native NEXO token on the open market. After a vesting period of 12 months after the repurchase, the company is able to use the tokens for strategic investments in token mergers or pay interest to the clients that receive their daily yields in Nexo. The buy-back program will help boost the NEXO price as the token is now ranked in the 89^th position on the crypto market cap list with a market capitalization of $1.41 billion. The token is trading at $2.52 or 24.9% higher over the past 24 hours.

Fidelity Investments made headlines when it launched on the fifth spot market exchange-traded fund in Canada which made it the largest asset manager that ever launched an ETF so far. The fact that the company launched it in Canada due to the US SEC disliking of an ETF approval is likely to cause embarrassment according to analyst Eric Balchunas. While Nexo and Fidelity are both expanding the market for retail investors, today we can see a similar promise made for the institutional investors.