What is Nexo (NEXO)?

Do you have cryptocurrency but don't want to spend it? Imagine a platform that both earns interest and offers instant loans. Nexo (NEXO) meets this need. This innovative platform, launched in 2018 (yes, Nexo was launched in 2018), allows you to instantly convert your digital assets into cash using a crypto-collateralized loan system. It also helps you generate passive income with its crypto interest-earning feature. Users can quickly obtain loans using assets like BTC, ETH, and stablecoins as collateral through the Nexo lending platform, while still benefiting from the returns on these assets.

In other words, Nexo is known as a crypto banking startup that allows you to obtain instant loans using cryptocurrencies as collateral and generate income from your assets. If you're looking for answers to questions like "What is Nexo?" or "What is Nexo Coin?", this guide will explore many details, from the platform's logic to its founding team, from its products and interest rates to its future.

Nexo's Definition and Origin

Nexo is a crypto-collateralized lending platform that allows users to obtain instant cash loans by using cryptocurrencies such as Bitcoin, Ethereum, and Litecoin as collateral. The platform allows users to borrow against fiat currency (USD, EUR, etc.) or stablecoins using the digital assets deposited as collateral. This allows cryptocurrency holders to obtain cash liquidity without having to sell their assets.

The most striking aspect of this system is that users do not need a credit score or bank procedures to obtain a loan. This means a decentralized and intermediary-free lending experience is provided. The Nexo lending platform assigns a credit limit to the user based on the value of the collateral, and users can access the loan within this limit at any time.

Founded in 2018, this initiative was brought to life by a team with backgrounds in traditional finance. The co-founders' previous experience at Credissimo, a fintech company operating in Europe, provided significant technical and regulatory infrastructure for this project.

Nexo not only provides loans but also offers users the opportunity to earn interest on their crypto assets. This means you can use your cryptocurrency as collateral to access loans, while simultaneously generating passive income. Thanks to this two-way service model, Nexo combines both borrowing and asset valuation needs under one roof.

The NEXO token, the cornerstone of the platform, is at the heart of this system. By holding this token within the platform, users receive benefits such as discounted loan interest rates and increased interest earnings. Furthermore, for those who want to increase their loyalty levels, staking is also required. This provides a clear answer to the question of what the NEXO token does: it serves as both a utility and a rewarding tool.

Nexo is considered one of the pioneers of the "bankless banking" vision in the cryptocurrency world. It offers a revolutionary alternative for crypto holders to both invest their assets and meet their immediate cash needs. The cumbersome procedures encountered in traditional systems, such as approval processes, credit score monitoring, and proof of income, are replaced by a user model that simply deposits crypto into their wallet and provides collateral. This is one of the main reasons why Nexo is preferred by millions of users around the world.

Nexo's History: Key Milestones

To truly understand a platform, we need to consider not only its offerings but also its origins and growth. Nexo's story begins not with ordinary beginnings, but with firm steps aimed at establishing a lasting presence in the crypto finance world. This project, which launched in 2018, has expanded not only its products but also its vision in the intervening years. Let's take a look at Nexo's journey and the significant developments it has experienced during each period.

• 2018: The Nexo platform launched, offering the first crypto-collateralized loan service (the Nexo launch date is known as 2018). The same year, the NEXO Token (NEXO) was launched, positioning itself at the heart of the ecosystem.
• 2019: Nexo launched interest-bearing crypto accounts (Earn Interest), allowing users to earn passive income through assets like stablecoins and Bitcoin. During this period, the number of users increased by up to 850%.
• 2020: Nexo began distributing a share of company profits (dividends) to NEXO token holders. For example, in August 2020, $6.1 million in dividends were distributed to token holders. That same year, the expansion of the "Earn on Crypto" feature increased interest rates, and the Nexo Loyalty Program was launched.
• 2022: Nexo partnered with global payment giant Mastercard to announce its crypto-collateralized credit card product. This card enabled cryptocurrencies to be used in everyday life by providing collateral and spending opportunities for crypto assets. Furthermore, Nexo strengthened its enterprise-grade security and custody solutions by partnering with institutions such as Fidelity Digital Assets and Ledger Vault.
• 2023–2024: The Nexo ecosystem expanded significantly. The Nexo Pro advanced trading platform, the Nexo Wallet (non-custodial wallet), a user-friendly storage solution, and the globally recognized Nexo Card were launched. In particular, the Nexo Card was launched in Europe as the first crypto-supported card integrated with Mastercard's infrastructure, allowing users to spend their assets without exchanging funds. By 2023, Nexo had become a platform serving over 1 million users in over 200 territories and managing over $4 billion in assets.

Why is Nexo Valuable?

When evaluating a platform, it's often more meaningful to approach it with questions like, "What does it offer, how does it work, and what does it offer the user?" From this perspective, Nexo offers lending, interest-earning, and token-based advantages. You can obtain loans by using your cryptocurrencies as collateral, and you can also earn interest by holding your assets in a Nexo account. Additionally, there's a loyalty system that varies based on the amount of NEXO tokens you hold, which affects your interest rates and loan costs. In other words, the platform operates on a model that combines several core functions. Let's examine these functions one by one:

Crypto-Collateralized Instant Loans

Nexo allows users to instantly obtain loans by using their digital assets (BTC, ETH, etc.) as collateral. This allows users to meet their urgent cash needs with a crypto-collateralized loan; users can secure financing by using their crypto assets as collateral without selling them.

Earning passive income from assets

The platform offers interest income on stablecoins, Bitcoin, Ethereum, and many crypto assets. Users earn daily interest income on the digital assets they hold in their Nexo account. For example, Nexo offers annual interest rates of up to 10% on stablecoin deposits, depending on loyalty levels, and around 5–8% on mainstream cryptocurrencies like Bitcoin. (Nexo interest rates vary depending on asset type, market conditions, and loyalty levels.)

Exclusive benefits for NEXO token holders

The NEXO token, Nexo's native token, provides holders with various privileges within the platform. NEXO token holders can benefit from lower interest rates when taking out loans and receive bonus increases on interest income applied to other assets in their accounts. Additionally, in past years, a portion of platform profits has been distributed to NEXO token holders as dividends.

The NEXO token is a central part of the Nexo ecosystem; it is not only an investment tool but also a structure that unlocks a system of benefits and rewards within the platform. Holding NEXO places you in tiers like Base, Silver, Gold, or Platinum within the Loyalty Program, which increases your interest rates, lowers loan interest rates, and earns bonuses like crypto cashback.

The requirements for each tier are as follows:

• Base: You don't need to hold NEXO tokens.
• Silver: The amount of NEXO tokens in your account must be at least 1% of your total portfolio.
• Gold: The percentage of NEXO tokens must be at least 5% of your portfolio.
• Platinum: At least 10% of your portfolio must be NEXO tokens.

This means users with higher loyalty levels benefit from benefits such as higher deposit interest rates, lower loan interest rates, and more free crypto withdrawals. For example, Platinum members can borrow at much lower rates than other users and maximize returns on savings products.

Nexo later added a staking mechanism to this loyalty system; you can also earn interest directly by locking NEXO tokens on the platform. For example, when you reach the Platinum level, you can earn significantly higher interest income than other users and benefit from the lowest interest rates when taking out loans. Furthermore, the NEXO token also features dividend distribution; in past years, up to 30% of company profits have been distributed to token holders (this system continues today with an interest-based mechanism). In short, the NEXO token acts as an economic lever that makes the platform's services more advantageous.

A product ecosystem that combines traditional and digital finance

Nexo brings together the worlds of traditional finance and the crypto world with innovative products like the Nexo Pro and Nexo Card. Nexo Pro caters to experienced investors by offering professional-grade trading tools and high liquidity, while the Nexo Card allows you to make purchases using your crypto-secured credit limit for daily expenses. This provides Nexo with a comprehensive ecosystem for using and managing crypto assets in the real world.

A user who increases their loyalty level by staking the NEXO token not only earns more interest on their assets but also benefits from lower costs when taking out loans. As the chart above shows, as loyalty levels increase, so do free withdrawals and crypto cashback on spending. This multi-tiered rewards system is a key driver of user loyalty within the Nexo ecosystem (for example, Platinum members can earn up to 2% crypto cashback on Nexo Card spending).

With the Nexo Card, you can spend with your crypto collateral at over 90 million MasterCard merchants, just like using a traditional credit card. One of the card's key advantages is that there's no minimum payment requirement on your outstanding balance and no interest accrues on unused credit limits. This means the interest you pay applies only to the amount of credit you actually use, and when your debt-to-collateral-to-value (LTV) ratio is below 20%, the interest rate can be as low as 0%. With these features, the Nexo Card stands out as a pioneering product that allows you to meet your daily financial needs without disrupting your crypto assets.

The Future of Nexo (NEXO) Coin

The future of the NEXO coin will directly depend on the success of the Nexo platform and the overall trajectory of the crypto finance sector. With the withdrawal of many competing centralized crypto lending platforms (such as Celsius and BlockFi) from the market in 2022–2023, Nexo has become one of the key players remaining in the industry. The platform continues its growth with new product launches and global expansions, processing more than $1.5 billion in crypto loans in 2024 and distributing over $250 million in total interest income to its customers. Nexo's 2025 plans include creating new use cases for the NEXO token, updating its loyalty program, and listing the token on more crypto exchanges. As long as the company maintains its focus on regulatory compliance and transparency, the future of Nexo appears positive. However, given the volatile nature and regulatory dynamics of crypto markets, it's important for investors to proceed with caution and research.

Who Founded Nexo?

To answer the question of who Nexo is, the platform is backed by an experienced team of Bulgarian origin. The company was founded in 2018 by Antoni Trenchev, Kosta Kantchev, and Kalin Metodiev. The founding partners have strong backgrounds in financial law, fintech, and investment banking, bringing their experience from the European financial world to the crypto sector. For example, Antoni Trenchev served as a Member of the Bulgarian Parliament and is known for his work supporting the adoption of blockchain technologies. The Nexo team consists of professionals with over 30 years of traditional finance experience, and the company operates globally through operations in Zug (Switzerland) and London. Nexo takes a proactive approach to compliance (regulation), focusing on meeting legal requirements in various countries.

Since its inception, Nexo has emphasized the principles of reliability and transparency. The team behind the platform has previously achieved success with traditional online lenders like Credissimo. This has enabled Nexo to establish a reliable credit infrastructure in the crypto sector. The company utilizes advanced custody solutions (e.g., Ledger Vault insurance) to secure customer assets and verifies its balance sheet health through regular independent audits. For example, Nexo, one of the first in the industry, announced the implementation of real-time proof-of-reserves through a major auditing firm, transparently demonstrating that the platform holds more assets than liabilities. Additionally, in 2023, Nexo successfully completed a SOC 2 Type 2 audit for system and data security, raising its compliance and security standards to the next level.

Frequently Asked Questions (FAQ)

Below are some frequently asked questions and answers about NEXO:

• What is Nexo and how does it work?: Nexo is a digital finance platform that offers instant cryptocurrency-backed loans and also earns interest on deposits. The platform works by allowing users to lock their cryptocurrencies as collateral and receive instant loans in return. Loans on Nexo offer flexible repayment terms; you can keep your loan open by paying only the interest as long as your collateral remains in your account, or you can repay the principal and pay off the debt at any time.
• What does NEXO token do?: The NEXO token is the native cryptocurrency of the Nexo ecosystem and functions as a key advantage. Users who hold this token receive numerous benefits on the platform: For example, NEXO holders can earn annual returns of up to 12%, start taking advantage of low crypto loan interest rates of 2.9%, and earn crypto cashback rewards of up to 2% on Nexo Card spending. The NEXO token also allows you to increase your loyalty level, allowing you to earn privileges like higher interest rates and free withdrawals on your other assets.
• How to get a loan with Nexo: Getting a crypto-backed loan on the Nexo platform is quite easy. First, you sign up to the platform and deposit supported cryptocurrencies like Bitcoin and Ethereum into your account. These deposited digital assets are used as collateral to calculate a credit limit; you can generally borrow up to 50% of your asset value (LTV ratio). The loan amount is instantly reflected in your account as fiat currency (e.g., USD, EUR) or stablecoin. Nexo loans have no installment or maturity requirements; you can keep your loan open by making interest-only payments or pay off the principal at any time. Furthermore, as long as you keep your LTV ratio low (for example, if your loan amount doesn't exceed 20% of your collateral), the interest rate can even be 0%.
• How to earn interest on Nexo?: To earn interest on the Nexo platform, simply deposit your cryptocurrency or stablecoin assets into your Earn account. For example, when you deposit a stablecoin like USD Coin (USDC), you can earn annual interest returns of up to 10–12%, depending on market conditions and your loyalty level. Popular cryptocurrencies like Bitcoin and Ethereum, on the other hand, have annual interest rates of 5–8%. At Nexo, interest returns are calculated daily and credited to your account daily. You can continue to earn compound returns by reinvesting these interest earnings, or you can withdraw and use the accumulated interest at any time.
• Is Nexo reliable and regulated?: Nexo is one of the most established crypto finance platforms in the industry and actively promotes security and legal compliance. The company meticulously implements KYC (know your customer) and AML (anti-money laundering) processes, ensuring users use the platform in compliance with regulations. Having completed licensing and registration processes in many countries, Nexo protects customer assets with insured custody services and verifies through independent audits that its reserves more than cover its obligations to customers. Furthermore, due to regulatory uncertainties in the US in 2022, Nexo terminated its services in that country and reached a $45 million settlement with the relevant authorities, demonstrating Nexo's commitment to meeting regulatory demands. Of course, as with any financial platform, users should act within their own risk tolerance; however, Nexo is generally recognized as a reliable platform in the industry.
• What are the benefits of staking NEXO tokens?: Holding (staking) your NEXO tokens on the Nexo platform offers multiple benefits. Firstly, you earn up to 12% annual interest on your NEXO balance, meaning you earn extra income even while your tokens are on the platform. Furthermore, as you hold more NEXO, you reach higher levels in the Loyalty Program, earning higher interest rates on your other assets and lower interest rates on loans. For example, a user who holds NEXO above a certain percentage can reach Platinum status, benefiting from maximum interest rate discounts and the highest cashback rates on the Nexo Card. Historically, NEXO holders have also received a share of Nexo's dividends, which can be seen as a long-term incentive for token ownership.

For more information on crypto-enabled financial services and digital asset loans, check out our JR Kripto Guide series.