Nexo

Based in London, Nexo offers a regulated digital asset platform that provides users with a suite of financial services that include trading solutions for retail and institutional clients, liquidity aggregation, digital asset-backed loans, and a yield earning interest protocol. The company also grants users custodial insurance with a dedicated wallet solution. Nexo offers real-time attestation of reserves via auditors Armanino in a bid to increase the transparency of its books and provide evidence of the ability to meet all outstanding liabilities. As of September 2022, Nexo had also secured 50 financial services licenses and registrations across the globe.

The company had an investment portfolio of over 60 companies, as of September 2022, through its investment arm Nexo Ventures. In addition, the company acquired a stake in Hulett Bancorp (DBA Mode Eleven) and its federally chartered Summit National Bank for an undisclosed amount during the same month. The acquisition enabled Nexo to offer bank accounts, asset-backed loans, card programs, and escrow and custodial solutions to its retail and institutional customers in the US via Summit National Bank. However, in December 2022, Nexo announced that it would stop offering its lending products and services in the US due to discussions with both state and federal regulators coming to a standstill over disagreements. Although the company did not provide a concrete timeline, it stated that it would be disabling access to its “Earn Interest” offering in eight states and will no longer be accepting any new customers from the US.  Moreover, In January 2023, the company went on to pay a total of USD 45 million in fines to the SEC and other state regulators for not registering the sale of its “Earn Interest Product”.

Key customer and partnerships

As of September 2022, Nexo served over 5 million users and partnered with companies such as Mastercard and Fidelity.