Nexo retail clients now have access to funds with PAX Gold (PAXG) serving as collateral.
The crypto loan scheme platform Nexo has recently expanded its services to include retail clients. According to reports, Nexo has decided to include small scale investors in its loan scheme. Thanks to the new offering, interested customers can get fiat currency loans against the gold-backed cryptocurrency.
Since its inception in late 2019, Nexo loan schemes were majorly for institutional-grade clients. Prior to this, there were no options for small-scale or retail grade clients.
Volatile times and Gold-backed loans
With the present onslaught of COVID-19 pandemic on nations and global economies, this is indeed trying times. The resultant volatility has led to a spate of loan schemes with a large number of clients looking to get funds.
Many clients who own crypto, however, prefer to use their tokens as loan collateral instead of converting them to cash.
The co-founder of Nexo, Antonio Tranchev, pointed out that the new loan scheme was the result of popular demand. He pointed out that all customers, especially their retail clients, would benefit by being able to borrow funds against PAX Gold.
The Nexo CEO added that the crypto lending platform was also enabling clients to invest in physical gold using PAXG token. As a result, customers can pledge the tokens as collateral and get credit up to 70 percent of the investment. And the Annual Percentage Rate for this scheme would start from 5.9 percent.
According to Nexo, they have over 650,000 clients, including institutional and retail grade customers. Last year, the crypto lending firm had paid over $2.4 Million as dividends to its token holders. Further, it bought PAXG tokens worth $5 million to meet the demand for tokenized gold lending and borrowing.
PAX Gold (PAXG) is an ERC-20 token designed on the Ethereum blockchain. It is currently equivalent to one fine troy ounce of London Good Delivery gold bar and redeemable by real gold secured in vaults.