Nexo Passes Real-Time Reserves Audit Conducted by Armanino
set 23, 20213 min read
LONDON, September 23, 2021 — Nexo, the leading institution for digital assets, today announced that Armanino LLP – a PCAOB-certified auditor and one of the 25 largest public accounting firms in the U.S. – now provides a real-time audit* of Nexo’s assets, thus offering unparalleled visibility into Nexo’s finances and showing that the company’s assets exceed its liabilities at all times.
Armanino’s real-time attestation of Nexo’s assets and customer obligations brings a level of customer security unprecedented in the crypto lending space. The independent audit also represents a significant milestone in Nexo’s transparency and compliance journey and marks only the beginning of a routine Proof of Reserves program. The next step will allow each client to verify for themselves that their particular assets are included in the daily reports.
The third-party audit, coupled with the company’s proactive stance on regulation and years of following the traditional licensing procedures around the globe, is testimony to Nexo's resolve and ability to adapt to changing circumstances and to best protect and serve its clients’ interests. This positions the company ahead of the curve as it gears up to join the prime brokerage race, launch its asset management division, and welcome institutional demand as one of the most secure, progressive, and compliant businesses.
“In the long run, the companies that provide their customers the necessary transparency, security and peace of mind, will win. Amidst increased regulatory interest in the cryptocurrency industry, we at Nexo are setting the bar high so as to prove to our clients and investors that the assets entrusted to us are indeed in good hands, a testament to which is the independent audit by Armanino. We challenge other lenders and crypto leaders to follow our lead,” commented Antoni Trenchev, Co-founder and Managing Partner of Nexo.
"As innovative companies like Nexo create the next generation of financial products and enable customer-first offerings, Armanino knows that attest tools must keep up with the pace of innovation,” said Noah Buxton, Managing Director and Practice Leader of Armanino’s Blockchain & Digital Assets Practice. “After a lot of mutual hard work and breaking of new ground, we are excited to unveil another world-first for the crypto and digital assets market. Meaningful transparency, on-demand, and unpermissioned. This is the new paradigm.”
For businesses in the financial sector, customer trust is a foundational block and showing reserves are fully backed goes a long way in further enhancing that trust. With the latest development in the #NexoTransparency campaign, Nexo is pleased to be one of the first crypto lenders to tap the innate auditability of cryptocurrencies and to set an example for others in the crypto industry to follow.
*Nexo is using the term “audit” herein as a short-hand reference for the specific type of engagement and independent accountant’s report issued by Armanino LLP. Nexo engaged Armanino LLP, a top public accounting firm, to perform an attest engagement under standards set forth by the American Institute for Certified Public Accountants (AICPA) and to issue an Independent Accountant’s Report on Agreed Upon Procedures (AUP). The attest report includes specific procedures performed by Armanino as well as Armanino’s findings.
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™, a high-yield Earn Crypto Interest suite, an instant Exchange service, and sophisticated trading and OTC capabilities, while providing the top-tier custodial insurance and military-grade security of the Nexo platform. Nexo has processed $50+ billion for 2,000,000+ users across more than 200 jurisdictions.
Armanino LLP (www.armaninollp.com) is one of the 25 largest independent accounting and business consulting firms in the nation. Armanino provides an integrated set of audit, tax, business management, consulting and technology solutions to companies in the U.S. and globally. The firm helps clients adapt and change in every stage of business, from startup through rapid growth to the sale of a company. Armanino emphasizes smart technology, leading a cloud revolution of financial, operational, sales and compliance tools that are transforming the way companies do business. The firm extends its global services to more than 100 countries through its membership in Moore Global, one of the world's major accounting and consulting membership organizations. In addition to its core consulting and accounting practices, Armanino operates its division, AMF Media Group (www.amfmediagroup.com), a media and communications services agency. Its affiliate, Intersect Capital (www.intersectcapitalllc.com) is an independent financial planning, wealth and lifestyle management firm. More information on Real-Time