Nexo has entered into a partnership with Bitcoin’s custodian Fidelity. As a result, Nexo, a lending company, will look into the new products and loans to investors of organizations.
Additionally, the partnership plans to introduce quality Bitcoin products into the market. Nexo intends to buy the enterprise infrastructure from Fidelity; the purchase will allow institutions to interact with the platform.
In turn, the partnership will also solve the need for institutions to join digital marketing. In a statement about the partnership Nexo stated;
“As a first step, the collaboration with Fidelity Digital Assets will expand Nexo’s ability to service and enhance its growing portfolio of assets under management and will provide an additional custody layer to Nexo’s military-grade security infrastructure.”
Structure for the Institutions
Currently, the wave of success in the digital world is attracting many big companies. In turn, the demand for learning and joining crypto mining is on the rise. This partnership plans to explore this demand and answer it.
Talking about the partnership Christopher Tyrer, the Europe Head of Fidelity Digital Assets, shares that he came across the demand for cryptocurrency acquisition and skills from institutions:
“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.”
By availing a lending and custodial platform to institutions, Nexo and Fidelity hope to mark a trend in growth. The investors will also benefit from Nexo’s plans to integrate Bitcoin assets into collateral for loans.
As a result of the high demands, some wall street banks like Goldman Sachs plan to develop a comprehensive structure to allow Bitcoin-backed loans. In addition to Morgan Stanley and JPMorgan, the three have serviced their wealthy clients using BTC products.
The Co-founder and managing partner of Nexo, Kalin Metodiev, says:
“Working with Fidelity Digital Assets is the latest milestone in our quest to offer a complete institutional platform and to onboard traditional finance companies into the digital asset ecosystem. 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.”
Fidelity and Bitcoin Strategies
Fidelity has been on the news media with regards to supporting Bitcoin. Last December, with the support of Block Fi, Fidelity managed to reach space. Furthermore, in March, the custodian partnered with silver gate to offer loaning services holding BTC assets as collateral.