Driven by our mission to create full-scale, client-centric banking services for all digital assets, Nexo now offers up to 5% interest on PAX Gold via the Earn on Crypto suite. This development comes hot on the heels of the launch of the PAXG-backed Instant Crypto Credit Lines™ in March 2020.
The Bigger Picture
Interest in tokenized gold grew steadily in 2020, with that for PAXG in particular rising by close to 25% over Q2 and Q3. Reflecting this trend, demand for PAXG-backed loans with Nexo rose by 61.2% over the last quarter. What’s more, in a recent poll 78% of our clientbase responded that they were interested in buying digital forms of gold.
Commenting on this latest expansion of our Earn suite, our Co-founder and Managing Partner Antoni Trenchev said: “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.”
In a wider context, the inherent utility of tokenized gold dispels Warren Buffett’s famous criticism that this precious metal is but a latent investment, the value of which is just a social construct. The versatility tokenization lends to gold is further boosted by the range of financial services leading providers like Nexo offer investors, and demonstrates the applicability and potential of tokenization for any physical asset.
Nexo’s History with Gold
In late 2019, Nexo began offering gold-backed credit lines to institutional clients. By December 2019, investor demand prompted us to purchase $5 million in PAXG to meet their needs, accelerating PAXG’s market cap to over $11M at the time, and leading to the asset’s integration into the Instant Crypto Credit Lines™ 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.
Earn Interest on PAX Gold
We have made sure your gold grows every day with the ultimate high-yield savings account, featuring:
- Up to 5% compounding interest on PAXG.
- A unique daily payout of all interest earned.
- No minimum or maximum limits on funds transferred, offering infinite opportunities to earn.
- Full flexibility with no lock-in periods, so you can withdraw your funds anytime.
- #ZeroFees on all transactions.
- All funds are asset-backed by Nexo’s portfolio of 200–500% overcollateralized crypto credit lines.
- Top-tier insurance on all custodial assets with SOC 2 Type 2 certified crypto custodian BitGo.
We are thrilled to be offering you 360° PAXG package and look forward to seeing you leverage this golden opportunity.
The Earn on PAXG launch comes within the broader context of tokenized gold in today’s economy. For a more in-depth perspective, we invite you to read our article: Not Anymore, Mr. Buffett: Tokenization Marks a New Era for Gold.