Cryptocurrency lending firm Nexo Financial has launched its proprietary prime brokerage platform, which is specifically designed to cater for the needs of institutional clients.
Nexo Prime has already beta-tested its offering, which simplifies complex tasks like digital assets custody, margin and OTC trading across multiple venues through a single account, with select market participants.
Nexo Prime’s custody framework combines industry-leading solutions from BitGo, Fireblocks, Ledger Vault, and Fidelity Digital Assets. The new brand has obtained its insurance coverage from the prestigious Lloyd’s of London, one of the oldest insurance agencies in the world, with centuries of experience in this industry. The contract allows its users to cover up to $375 million worth of their digital assets held in their accounts.
Aiming to provide infrastructure covering onboarding, execution, settlement, reporting and custodianship, the new service encompasses many relevant features that covers requirements for analogous businesses in traditional investment sectors. This includes multi-exchange direct market access, custody, trading directly through API calls, leveraged trade execution, OTC block trading, risk management , smart order routing, integration of third party solutions and round-the-clock support.
Nexo Prime’s offering is aimed at investment managers and hedge funds, including cryptocurrency funds, private banks, family offices and wealth managers. The firm opens business accounts with as many exchanges as possible across the entire world, while presenting a unified interface to its clients. This allows institutional traders to make large orders without depressing the price on one specific venue.
Nexo’s lending business under SEC’s radar
Commenting on the news, Kalin Metodiev, Nexo Co-Founder and Managing Partner, said: “Institutional and corporate demand for digital assets has never been greater, and the market for prime services could 10x over the next year. Clients entering the space demand a sophisticated, all-in-one, institutional-grade platform, and that’s exactly what we provide them with Nexo Prime.”
“We’ve carefully built-out and incubated Nexo Prime over the past 18 months with a core client group, and we’re excited to unveil the platform for the rest of the world to see,” said Yasen Yankov, Vice President of Development at Nexo Prime. “We are today, already a trusted partner to leading trading firms, hedge funds, family offices, and OTC desks. We provide our clients with access to deep, diversified liquidity pools; lending to meet any need; the best prices in the market; efficient, low-latency execution; and an industry-leading custody solution in partnership with BitGo, Fireblocks, Ledger Vault, and Fidelity Digital Assets, all combined with $375 million in custodial insurance via Lloyd’s of London and Marsh & Arch.”
Earlier in November, Nexo acquired a stake in SEC-regulated Texture Capital in a move that clears the path for it to offer new services through a registered broker-dealer arm. The transaction came barely a few weeks after the New York Attorney General’s Office reportedly accused Nexo of offering unregistered services to local residents. The state authority directed Nexo and another crypto lender, Celsius, to cease operations in October, citing failure to register the business in New York and performing unlawful activities.
As such, the acquisition puts Nexo on a firmer regulatory footing with the Securities and Exchange Commission and positions it to offer a broader range of products, including blockchain-based securities. It also allows the platform to perform all operations in a regulatory compliant manner.