Nexo, a London-based regulated financial institution for digital assets, has launched Nexo Prime, its proprietary prime brokerage platform targeted at institutional, corporate, and high-net-worth investors (HNWIs).
The company said the platform will give investors “all the tools necessary to trade, borrow, lend, and securely store their digital assets in a single product.”
Nexo Prime, which was launched on Wednesday, will serve clients across the world around-the-clock, the lending institution added.
Explaining the rationale behind the development of the platform, Kalian Metodiev, Nexo’s co-founder and managing partner, said the industry was getting an all-time-high demand for digital assets among institutional and corporate clients.
“Clients entering the space demand a sophisticated, all-in-one, institutional-grade platform, and that’s exactly what we provide them with Nexo Prime,” the Nexo Chief Financial Analyst added.
Yasen Yankov, the Vice President of Development for Nexo Prime, who said the company was excited to unveil the platform, disclosed that the company had carefully built out and incubated the new platform over the past 18 months with a core client group.
“We are today, already a trusted partner to leading trading firms, hedge funds, family offices, and OTC desks. We provide our clients with access to deep, diversified liquidity pools; lending to meet any need; the best prices in the market; efficient, low-latency execution; and an industry-leading custody solution in partnership with BitGo, Fireblocks, Ledger Vault, and Fidelity Digital Assets, all combined with $375 million in custodial insurance via Lloyd’s of London and Marsh & Arch,” Yankov added.
Next Prime’s Features
According to Nexo, Nexo Prime comes with a set of features to meet the trading, custodial and lending needs of institutional, corporate and HNWI investors.
For trading purposes, the firm said the Nexo Smart Routing System was designed to enable cost-effective execution of orders “smoothly and reliably with competitive trading fees.”
Among others, the new platform’s trading infrastructure will also help clients “access diversified liquidity, aggregated from the world’s leading exchanges, liquidity providers, and select market makers
Market Makers
Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry.
Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry.
Read this Term.”
For custodial services, the company noted that Nexo Prime combines industry-leading solutions from BitGo, Fireblocks, Ledger Vault, and Fidelity Digital Assets.
“All digital assets are stored in military-grade Class III vaults, have instant access to funds at all times for trading and stay protected with $375 million in custodial insurance via Lloyd’s of London and March & Arch,” Nexo explained.
For lending, the firm observed that Nexo Prime’s crypto lending
Crypto Lending
The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market makers, proprietary traders, investment managers, hedge funds, traders.These entities or individuals look to short the market, arbitrage-based traders, or entities who need to fulfill an obligation with another party. Different Types of Crypto LendingWhile the process of crypto lending is simply, there are four types of crypto lending practices that traders should familiarize themselves with.Companies, individuals, or entities who possess an excess of cryptocurrencies can earn additional cryptocurrencies through crypto lending. Crypto-to-crypto lending materializes in the form of a smart contract, where crypto lenders can earn interest for a specific period. Common cryptocurrencies that are lent include Bitcoin, Ethereum, and Altcoins. Two examples of crypto-to-crypto lending include Nuo and Coincheck. Moreover, margin lending is a new type of crypto lending, which enables lenders to fund varying cryptocurrencies to borrowers as opposed to a single crypto asset. Typically, lenders of margin lending fix their interest rate and contract duration while occurring over a centralized platform such as Nuo and Bitfinex. While less common, crypto-to-fiat lending occurs when individuals, businesses, or entities require cash. Cryptocurrencies are used as collateral while the lender receives a fiat return which generally is credited to a linked bank account. Finally, crypto-credit lending occurs when entities need capital. Opposed to peer-to-peer (P2P) lending, crypto-credit lending places less emphasis on credit history although this comes with a sacrifice of regulation.
The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market makers, proprietary traders, investment managers, hedge funds, traders.These entities or individuals look to short the market, arbitrage-based traders, or entities who need to fulfill an obligation with another party. Different Types of Crypto LendingWhile the process of crypto lending is simply, there are four types of crypto lending practices that traders should familiarize themselves with.Companies, individuals, or entities who possess an excess of cryptocurrencies can earn additional cryptocurrencies through crypto lending. Crypto-to-crypto lending materializes in the form of a smart contract, where crypto lenders can earn interest for a specific period. Common cryptocurrencies that are lent include Bitcoin, Ethereum, and Altcoins. Two examples of crypto-to-crypto lending include Nuo and Coincheck. Moreover, margin lending is a new type of crypto lending, which enables lenders to fund varying cryptocurrencies to borrowers as opposed to a single crypto asset. Typically, lenders of margin lending fix their interest rate and contract duration while occurring over a centralized platform such as Nuo and Bitfinex. While less common, crypto-to-fiat lending occurs when individuals, businesses, or entities require cash. Cryptocurrencies are used as collateral while the lender receives a fiat return which generally is credited to a linked bank account. Finally, crypto-credit lending occurs when entities need capital. Opposed to peer-to-peer (P2P) lending, crypto-credit lending places less emphasis on credit history although this comes with a sacrifice of regulation.
Read this Term platform was built to provide clients with liquidity on demand, whether it is needed for margin trading or an over-the-counter loan.
Through the new platform, clients can also “get access to institutional financing options for cryptocurrencies, stablecoins, and fiat; scale trading strategies while preserving the value of crypto assets; and add extra leverage to a portfolio by borrowing at the best market rates.”
Nexo and the Future of Money
Last month, Nexo allocated $150 million for long-term investments to be made by its newly-launched unit, Nexo Ventures. The unit, headed by Tatiana Metodieva, Nexo’s Head of Corporate Finance and Investments, focuses on third-generation websites (Web3) and GameFinance crypto payments and compliance solutions.
In January, the company had partnered with Bakkt Holdings Inc. to use the latter’s warehouse to safeguard its customers’ Bitcoin and Ether holdings.
Nexo also recently halted its interest charge on new crypto deposits for its US customers after BlockFi’s $100 million settlement with the US securities regulator.
Nexo, a London-based regulated financial institution for digital assets, has launched Nexo Prime, its proprietary prime brokerage platform targeted at institutional, corporate, and high-net-worth investors (HNWIs).
The company said the platform will give investors “all the tools necessary to trade, borrow, lend, and securely store their digital assets in a single product.”
Nexo Prime, which was launched on Wednesday, will serve clients across the world around-the-clock, the lending institution added.
Explaining the rationale behind the development of the platform, Kalian Metodiev, Nexo’s co-founder and managing partner, said the industry was getting an all-time-high demand for digital assets among institutional and corporate clients.
“Clients entering the space demand a sophisticated, all-in-one, institutional-grade platform, and that’s exactly what we provide them with Nexo Prime,” the Nexo Chief Financial Analyst added.
Yasen Yankov, the Vice President of Development for Nexo Prime, who said the company was excited to unveil the platform, disclosed that the company had carefully built out and incubated the new platform over the past 18 months with a core client group.
“We are today, already a trusted partner to leading trading firms, hedge funds, family offices, and OTC desks. We provide our clients with access to deep, diversified liquidity pools; lending to meet any need; the best prices in the market; efficient, low-latency execution; and an industry-leading custody solution in partnership with BitGo, Fireblocks, Ledger Vault, and Fidelity Digital Assets, all combined with $375 million in custodial insurance via Lloyd’s of London and Marsh & Arch,” Yankov added.
Next Prime’s Features
According to Nexo, Nexo Prime comes with a set of features to meet the trading, custodial and lending needs of institutional, corporate and HNWI investors.
For trading purposes, the firm said the Nexo Smart Routing System was designed to enable cost-effective execution of orders “smoothly and reliably with competitive trading fees.”
Among others, the new platform’s trading infrastructure will also help clients “access diversified liquidity, aggregated from the world’s leading exchanges, liquidity providers, and select market makers
Market Makers
Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry.
Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry.
Read this Term.”
For custodial services, the company noted that Nexo Prime combines industry-leading solutions from BitGo, Fireblocks, Ledger Vault, and Fidelity Digital Assets.
“All digital assets are stored in military-grade Class III vaults, have instant access to funds at all times for trading and stay protected with $375 million in custodial insurance via Lloyd’s of London and March & Arch,” Nexo explained.
For lending, the firm observed that Nexo Prime’s crypto lending
Crypto Lending
The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market makers, proprietary traders, investment managers, hedge funds, traders.These entities or individuals look to short the market, arbitrage-based traders, or entities who need to fulfill an obligation with another party. Different Types of Crypto LendingWhile the process of crypto lending is simply, there are four types of crypto lending practices that traders should familiarize themselves with.Companies, individuals, or entities who possess an excess of cryptocurrencies can earn additional cryptocurrencies through crypto lending. Crypto-to-crypto lending materializes in the form of a smart contract, where crypto lenders can earn interest for a specific period. Common cryptocurrencies that are lent include Bitcoin, Ethereum, and Altcoins. Two examples of crypto-to-crypto lending include Nuo and Coincheck. Moreover, margin lending is a new type of crypto lending, which enables lenders to fund varying cryptocurrencies to borrowers as opposed to a single crypto asset. Typically, lenders of margin lending fix their interest rate and contract duration while occurring over a centralized platform such as Nuo and Bitfinex. While less common, crypto-to-fiat lending occurs when individuals, businesses, or entities require cash. Cryptocurrencies are used as collateral while the lender receives a fiat return which generally is credited to a linked bank account. Finally, crypto-credit lending occurs when entities need capital. Opposed to peer-to-peer (P2P) lending, crypto-credit lending places less emphasis on credit history although this comes with a sacrifice of regulation.
The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market makers, proprietary traders, investment managers, hedge funds, traders.These entities or individuals look to short the market, arbitrage-based traders, or entities who need to fulfill an obligation with another party. Different Types of Crypto LendingWhile the process of crypto lending is simply, there are four types of crypto lending practices that traders should familiarize themselves with.Companies, individuals, or entities who possess an excess of cryptocurrencies can earn additional cryptocurrencies through crypto lending. Crypto-to-crypto lending materializes in the form of a smart contract, where crypto lenders can earn interest for a specific period. Common cryptocurrencies that are lent include Bitcoin, Ethereum, and Altcoins. Two examples of crypto-to-crypto lending include Nuo and Coincheck. Moreover, margin lending is a new type of crypto lending, which enables lenders to fund varying cryptocurrencies to borrowers as opposed to a single crypto asset. Typically, lenders of margin lending fix their interest rate and contract duration while occurring over a centralized platform such as Nuo and Bitfinex. While less common, crypto-to-fiat lending occurs when individuals, businesses, or entities require cash. Cryptocurrencies are used as collateral while the lender receives a fiat return which generally is credited to a linked bank account. Finally, crypto-credit lending occurs when entities need capital. Opposed to peer-to-peer (P2P) lending, crypto-credit lending places less emphasis on credit history although this comes with a sacrifice of regulation.
Read this Term platform was built to provide clients with liquidity on demand, whether it is needed for margin trading or an over-the-counter loan.
Through the new platform, clients can also “get access to institutional financing options for cryptocurrencies, stablecoins, and fiat; scale trading strategies while preserving the value of crypto assets; and add extra leverage to a portfolio by borrowing at the best market rates.”
Nexo and the Future of Money
Last month, Nexo allocated $150 million for long-term investments to be made by its newly-launched unit, Nexo Ventures. The unit, headed by Tatiana Metodieva, Nexo’s Head of Corporate Finance and Investments, focuses on third-generation websites (Web3) and GameFinance crypto payments and compliance solutions.
In January, the company had partnered with Bakkt Holdings Inc. to use the latter’s warehouse to safeguard its customers’ Bitcoin and Ether holdings.
Nexo also recently halted its interest charge on new crypto deposits for its US customers after BlockFi’s $100 million settlement with the US securities regulator.
Source: https://www.financemagnates.com/institutional-forex/crypto-lending-platform-nexo-launches-prime-brokerage-services/