LONDON–(BUSINESS WIRE)–October 20, 2020–
Nexo, the leading regulated financial institution for digital assets, now offers its clients the opportunity to earn up to 5% interest on their PAX Gold deposits with the asset-backed token’s integration into the Earn on Crypto & Fiat suite. Spurred by growing demand for tokenized gold, the move closely follows the launch of the PAXG-backed Instant Crypto Credit Lines in March 2020.
“Gold – a $7 trillion industry – remains an investment stronghold in times of trouble, as its increased desirability during the COVID crisis so poignantly reiterates. Tokenized gold is arguably the smartest way to own this precious metal, with PAXG being one of the most widely adopted tokenized gold assets. The ability to now earn interest on PAXG, as well as borrow against it, increases its utility even further and supports Nexo’s long-term goal of offering profitable and accessible investment opportunities for all,” commented Nexo Co-founder and Managing Partner Antoni Trenchev.
Interest in tokenized gold grew steadily in 2020, with demand for PAXG in particular rising by close to 25% over Q2 and Q3, according to CoinMarketCap. Reflecting this trend, Nexo marked a 61.2% quarter-on-quarter increase in the amount of PAXG-collateralized loans in Q3 2020, with 78% of the company’s clientbase also responding in a recent poll that they were interested in buying digital forms of gold.
Nexo has supported PAX Gold since the token’s launch in late 2019, when the company began offering gold-backed credit lines to institutional clients. By December 2019, investor demand prompted Nexo to purchase $5 million in PAXG to meet needs, accelerating PAXG’s market cap growth to over $11M at the time, and leading to the asset’s integration into Nexo’s retail offering.
PAX Gold is an Ethereum blockchain-based regulated digital token from Paxos Trust Company. Each token represents one ounce of premium, institutional-grade gold, Good Delivery gold held in London-based Brink’s vaults. PAXG allows for large-scale fractional ownership and inclusive participation in the growth potential of gold.
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Nexo is the world’s leading regulated financial institution for digital assets. The company’s mission is to maximize the value and utility of cryptocurrencies by offering tax-efficient ‘Instant Crypto Credit Lines’, high-yield ‘Earn Interest’ products, ‘Send & Pay’, and sophisticated trading and OTC capabilities, while providing the $100 million custodial insurance and military-grade security of the Nexo Wallet. Nexo has processed $3+ billion for nearly 1 million users across more than 200 jurisdictions.
Official website: https://nexo.io
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