We pride ourselves on being the most security-focused digital assets institution.
This is why we are delighted to provide top-tier insurance on custodial assets through our partnerships with Ledger, Bakkt, Fireblocks, and other industry-leading custodians whose facilities are protected via a syndicate of insurers in the Lloyd’s of London and Marsh and Arch.
So, how does the insurance benefit you as a client? How does our wallet work, where are your assets, and where is our insurance coming from? Find out here.
Тhe saying goes: Don’t keep all your eggs in one basket. The endless “hot vs. cold storage, custodial vs. non-custodial wallets” dilemma is one we know all too well, which is why we’ve done something about it – the Nexo Wallet lets you manage all your assets from a single wallet without actually keeping them in one place.
The Nexo Wallet is a custodial wallet, which means that a third party actually stores and secures your assets. Since Nexo itself is not a custodian, we employ services from Ledger Vault, Bakkt, Fireblocks, and other well-established partners to ensure top-tier storage for all assets placed under our care.
We use multiple trusted custodians in order to diversify our comprehensive custodial infrastructure. Consequently, your digital assets are held in a mix of hot and cold storage by partners in various geographical locations, making it exceptionally difficult for unauthorized parties to gain access to them, but also lending you the needed flexibility to be efficient in the dynamic crypto market.
Finally, the Nexo Wallet unifies all the information about your assets from our custodial partners and presents it in a comprehensive, simple, and user-friendly way so that you can instantly manage your crypto.
The Breakdown: Our Partners & the Services We Use
- Ledger Vault – Ledger Vault gives us the opportunity to store custodial assets securely with the added bonuses of having instant access to those funds and full independence from cold storage. The Vault’s stress-tested hardware and software guarantee that we have access to funds on the Nexo platform even during black swan events.
- Bakkt – NYSE-listed Bakkt provides Nexo with Bitcoin and Ethereum custody in the Bakkt Warehouse, the company’s regulated custodian, which comprises both warm and cold digital asset storage to minimize risks. For additional layers of protection, Bakkt’s warm and cold wallets are built on secure wallet architecture, along with multi-zone physical security, including bank-grade vaults.
- Fireblocks – With our client base growing fast, our services and counterparties expanding, we needed a solution that allows us to quickly and easily view all of the assets we manage across the board. This is where Fireblocks comes in, providing us with an overview of all the funds we hold with Ledger Vault, and other custodians, on exchanges, and with institutional counterparties, as well as the USD in one of our major bank accounts.
- Armanino – Тo increase transparency, Nexo is working with Armanino to conduct a Proof of Reserves assessment and provide real-time attestations over the company’s custodial holdings. With this pioneering move for the crypto lending space, we give you the ultimate peace of mind that Nexo is able to meet client obligations at all times. See today's report here.
- Other partners – To provide greater security and insurance coverage, Nexo partners with a syndicate of leading custodians, storing a portion of assets with their various custodial services and securing additional insurance for our users.
We trust you have enjoyed getting to know our security system more closely and look forward to building upon it in the near future.