Recently, a cryptocurrency loans service called Nexo announced to the general public that it is adding support for bitcoin cash (BCH). This lending platform based in Switzerland provides crypto-fiat loans from more than $1,000, with no credit checks required as collateral. BCH holders will be able to stake their cryptocurrency as collateral and acquire funding in more than 40 fiat currencies.
These days the cryptocurrency lending service Nexo has been growing fast. Not so long ago, Ripple’s XRP was added and has now confirmed that it will include bitcoin cash and litecoin. These new cryptocurrencies will join BTC, ETH, BNB, and NEXO, giving cryptocurrency holders the opportunity to borrow anywhere from $1,000 to $2 million. Instead of selling their bitcoin cash when they need access to capital, its users can lock BCH into the Nexo platform, before recovering their coins as soon as their loans have been paid.
A blockchain security company called BitGo is where Nexo’s cryptocurrency assets are secured. BitGo is Nexo’s custodial partner, which recently closed a Series B funding round from investors including Goldman Sachs. Bitgo has attracted a number of institutional clients to its service, as well as cryptocurrency companies such as Kraken and Pantera Capital.
Once cryptocurrencies have been placed as collateral with Nexo, customers can obtain instant loans, and will also be entitled to additional credit should the value of their cryptocurrencies appreciate. Nexo boasts of having issued more than $1 billion of cryptocurrency loans to date.
These days, cryptocurrency holders have a good number of lending options at the palm of their hands. According to reports this month, Salt included support for dogecoin, while platforms such as Ethlend and Celsius Network have also been gaining traction. Cryptocurrency loans have a range of applications, including the provision of short-term funding for hedge funds that have invested in cryptos and wish to obtain capital for new investment opportunities.
Nexo’s crypto-fiat lending service has also attracted cryptocurrency miners seeking to cover hardware expenses, as well as investors who wish to take out loans to buy more cryptocurrencies in the belief that they will rise in value, so they can profit without selling their existing holdings.
Before Nexo decided to add bitcoin cash and litecoin, they first did a community survey which they saw that there was an intense desire for the coins. As we speak, the lending platform is currently finalizing BCH wallet integration before the bitcoin cash lending service goes online within a few weeks.