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 offers a range of options for users to store their crypto holdings including a non-custodial wallet as well as an insured custodial option via partnerships with Fireblocks and Ledger. Notably, 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 May 2024, Nexo supported over 80 cryptocurrencies and was available across over 200 jurisdictions. Moreover, during the same period the company had also secured nine financial services licenses and registrations across the globe (including Australia, Hong Kong, Poland, Dubai, and Italy). 

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.

The company went on to wind down two of its UK-based entities (Nexo Financial Services Ltd. and Nexo Clearing and Custody) in May 2023 due to legal uncertainty in Europe. Notably, the company stated it would be restructuring its operations but not exiting the country entirely. 

Key customer and partnerships

As of May 2024, Nexo served over 7 million users and partnered with companies such as Mastercard and Fidelity. 

Funding and financials

In January 2024, the company announced that it had filed an arbitration claim against the Republic of Bulgaria, seeking USD 3 billion in damages. Nexo stated the claim was filed to receive compensation for the loss of certain business opportunities, such as a potential initial public offering (IPO) in the US, due to the country’s reportedly “unjustified and oppressive criminal investigations” in December 2023.