Startup Launches Crypto-for-Cash Credit platform: It is Backed by Arrington
Arrington is TechCrunch Founder
Nexo, a crypto startup which is supported by Michael Arrington the TechCrunch founder has been involved in the launch of a cash-based lending platform.
According to the announcement on Monday, Nexo weeks to provide the loans and also makes an extension of the line of credit by utilizing the organization’s assets. This is according to Antoni Trenchev who is the managing partner.
Therefore, the organization is said to have raised close to $50 million from the various investors. This fund is meant to provide the required liquidity to the platform of the organization. Therefore, this is distinct from the other crypto backed solutions for lending which just connect the borrowers with the other people who wish to lend their money.
Therefore, according to the structure, Nexo can offer instant loans with no credit checks. There are no delays in which the manual method incurs. This is according to Trenchev.
Therefore, the startup has been involved in a partnership with BitGo Blockchain security which is like the custodian. Additionally, the organization has been on the quest to team up with a small scale federal Deposit Insurance Corporation Bank in order to store their assets.
“All of the software, all of the automation process is something we have developed ourselves, and most of the tools, we have used them for several years. All of our software and automation process are [used by Credissimo]. … We have developed our own models of insuring and protecting our business.”
The organization is supported and also advised by Michael Arrington who informed Cryptona.co that he was one of the people behind the financial backing.
Nexo is just acting like a bank. Arrington said:
“I haven’t seen anyone do a good job so far of providing liquidity for people who have cryptocurrencies without forcing them to sell the cryptocurrency, or to put it more succinctly, provide a proper credit line to people who own cryptocurrencies.”
On the other hand, Trenchev added;
“If you look at the trend with cryptocurrencies, volatility is going down, it’s still very volatile … [but] we are pretty confident that volatility is on a downward trend and will continue to do so, which will make our model even more robust than it is.”