Nexo and Fidelity Digital Assets have teamed up to provide institutional crypto investors with high-security services
Nexo, a crypto lending and savings firm based in the United States, has teamed up with New York City-based Fidelity Digital Assets (FDA) to attract large institutional investors to the cryptocurrency space. Nexo will use Fidelity's asset management infrastructure to expand its service access to institutional investors as part of the agreement. The companies will collaborate on the development of new products such as Bitcoin-backed loans as part of the agreement. Fresh custodial layers will be added to Nexo's existing "military grade" security system to protect these massive investors.
"We've seen tremendous growth in interest in digital assets from institutions in the European market, and we're committed to implementing sophisticated solutions to match those available with traditional asset classes," Christopher Tyrer, Head of Fidelity Digital Assets, Europe, said.
In recent months, a large number of investors have expressed interest in the crypto space.
Bank of America (BofA) recently acknowledged in a report that cryptocurrencies have grown "too large to ignore."
According to the report, large institutional investors have poured $17 billion into the Decentralised Finance (DeFi) ecosystem in recent years. DeFi systems are designed to provide a self-contained and decentralized alternative to financial services that are currently regulated by banks and national or international governments.
Consecutive reports of crypto-related firms being hacked, on the other hand, have deterred large investors from entering the space.
"With Fidelity Digital Assets' bespoke custody and security solutions, our client base will now have full access to our industry-leading credit and trading products," said Kalin Metodiev, Nexo's Co-Founder and Managing Partner.
This partnership comes just a few weeks after Nexo announced a $100 million buyback program for NEXO, the platform's native token.