Nexo, the market-leading crypto lender, and Chainlink, the most used and secure decentralized oracle network in the blockchain ecosystem, are forming a collaboration that would integrate Chainlink into Nexo’s lending and trading operations.
Chainlink will contribute to the decentralization of Nexo’s lending, OTC, and institutional capabilities as Nexo builds out a complete prime brokerage product suite.
Using Chainlink’s oracle networks would boost Nexo’s security and enable increased custody of user funds, greater loan volumes, and a more active OTC desk. This additional security would be achieved through the blending of Nexo’s highly performant infrastructure, which secures over $600M in user funds, with the decentralized infrastructure of Chainlink’s price reference data oracle networks, which also secure hundreds of millions of USD in value. This collaboration acts as a key example of how decentralized infrastructure is accelerating the adoption of cryptocurrencies such as Bitcoin and various stablecoins.
Commenting from a long-term institutional perspective, Nexo Co-founder and Managing Partner Antoni Trenchev said,
“Nexo’s mission is to bridge the gap between digital and traditional finance and our developing collaberation with Chainlink brings us a step closer to achieving this. We are very much on the same page — both in terms of how our respective services currently align, and in terms of our shared vision for a digital, decentralized future of finance. We’re thrilled to have them on board.”
As part of this integration, Nexo intends to use Chainlink’s oracle networks to produce on-chain audit trails of its lending and borrowing operations. In situations where Nexo loans make interest payments in a separate currency than what the loan is denominated in, Chainlink would provide a reliable and transparent exchange rate for calculating the interest payments. In addition, Chainlink price feeds will provide collateralization checks on borrowers, alerting Nexo when users have hit their liquidation price.
“We’re excited to bring Chainlink’s secure and reliable oracle solutions to Nexo’s popular lending platform to enable users to independently verify on-chain the interest and collateralization rates they should receive,” stated Chainlink Co-founder Sergey Nazarov. “This allows Nexo to provide additional trust and transparency to their large user base.”
Nexo is the world’s leading regulated digital assets institution. 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 800,000+ users across more than 200 jurisdictions.
Official website: https://nexo.io
Chainlink is a decentralized oracle network that helps resolve connectivity issues with smart contracts, enabling users to build blockchain-based smart contracts that securely access off-chain data feeds, web APIs, and traditional bank payments. By doing so, Chainlink transforms the role that smart contracts can play in a vast number of sectors, including financial services, insurance, and supply chain. Chainlink provides highly secure and reliable oracles to large enterprises (Google, Oracle, and SWIFT) and leading smart contract development teams such as Polkadot/Substrate, Synthetix, Aave, Tezos, Conflux, and many others. Learn more by visiting the Chainlink website or following on Twitter or Reddit.
Official website: chain.link