Fidelity and Nexo are entering institutional lending market

The collaboration aims to give institutions access to digital assets with new innovative product designed specifically for their needs. Read the full article by: Arnold Kirimi

Key Points:

• Fidelity Digital Assets is one of the largest providers in the space aiming to bring an enterprise grade platform for trading and other digital assets services. They also currently have about $7 trillion in client assets.

• The partnership with Nexo will open up more opportunities for their bigger institutional clients as it will give them the ability to lend out assets for an APY return leveraging Nexos large portfolio of assets. This is also important because Fidelity has a bit license which allows them to offer these services to clients in New York.

• “Working with Fidelity Digital Assets is the latest milestone in our quest to offer a complete institutional platform and to onboard traditional finance companies into the digital asset ecosystem. Our client base will now have full use of our industry-leading credit and trading products with reliance on Fidelity Digital Assets’ bespoke custody and security solutions” said Kalin Metodiev co-founder of Nexo.

• The two will work together to make a comprehensive legal framework to make sure they are as compliant as possible to avoid any issues with the SEC and other regulatory bodies. Recently the SEC put a stop to Coinbase lend product saying that it would violate “long standing securities regulations.”