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US-based crypto lending and saving firm Nexo has partnered New York City-based Fidelity Digital Assets (FDA) to rope in large scale institutional investors to enter the cryptocurrency space. As part of the deal, Nexo will use Fidelity's asset management infrastructure to expand its service access to institutional investors. Under the deal, the companies will be working on the development of new products like Bitcoin-backed loans. To protect these giant investors, fresh custodial layers will be added to what Nexo claims to be its existing “military grade” security system.
“We've seen tremendous growth of interest in digital assets from institutions within the European market and we're committed to implementing sophisticated solutions to match those available with traditional asset classes,” said Christopher Tyrer, Head of Fidelity Digital Assets, Europe, commenting on the development.
Hefty investors have been showing inclination in the crypto space in recent times.
Recently, a report by the Bank of America (BofA) also acknowledged that cryptocurrencies have become “too large to ignore.”
In the report, BofA said that massive institutional investors poured in $17 billion (roughly 1,27,055 crore) in Decentralised Finance (DeFi) ecosystem in recent years. DeFi systems aim to provide an autonomous and decentralised option for financial services that are otherwise regulated by banks and national or international administration.
Consecutive reports of crypto-related firms being breached however have kept large size investors away from entering the crypto space.
“Our client base will now have full use of our industry-leading credit and trading products with reliance on Fidelity Digital Assets' bespoke custody and security solutions,” Kalin Metodiev, Co-Founder and Managing Partner at Nexo said.
This partnership comes a few weeks after Nexo announced the launch of a buyback program for NEXO, the native token for the platform for $100 million (roughly Rs. 754 crore).