Crypto lender Nexo enters race for prime brokers, taps Chainlink for audits

Crypto lender Nexo is gearing up to enter the prime brokerage space with the help of audits powered by Chainlink to bring more transparency to its operations.

The Swiss lender announced on Wednesday an integration with supplier Oracle. Chainlink will provide audit trails for Nexo’s lending and borrowing operations, revealing how the company handles user collateral, Nexo CEO Atoni Trenchev said in an interview.

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In cases where the interest paid on a loan is in a separate currency from that in which the loan is denominated, Chainlink will provide an exchange rate for the calculation of interest payments. The Chainlink oracle protocol functions as a decentralized and transparent arbiter of asset prices, eliminating the possibility of a central point of failure.

Prime Broker Plans

Nexo hopes that this increased security will facilitate the company’s expansion into the prime brokerage space. The lender revealed in the same announcement that it plans to create a “full suite of prime brokerage products”. Earlier this year, Coinbase, Genesis Trading, Bequant, and BitGo all announced plans to become prime brokers.

The news of Nexo’s brokerage plans follows the company’s announcement in June that, like its competitors in the lending market, it was offering interest on crypto deposits.

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Nexo is now offering 5% on bitcoin (BTC), bitcoin cash (BCH), ether (ETH), XRP, EOS, stellar (XLM) and litecoin (LTC), half of the 10 % Nexo users earn on fiat currencies and stablecoins like USDT, dai, and PAX. Interest in the product is deposited into clients’ accounts daily at 12:00 UTC (8:00 am ET).

Trenchev said that before getting into crypto, he waited until Nexo had found “proprietary and market-neutral” strategies to take advantage of loan arbitrage, basis trading and other strategies.

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