By Nathan Ferguson
The world’s 5th highest ranked cryptocurrency by market capitalization, Cardano (ADA), continues to be on everyone’s watchlist as it is one of the few altcoins that has managed to withstand the effects of the recent market correction. Currently trading at $1.31, Charles Hoskinson’s project has shown considerable improvement, with developments around its imminent Alonzo upgrade making headlines every now and then.
Most recently, Cardano fans have yet another reason to celebrate as the project has now been launched on Nexo. Nexo is a cryptocurrency start-up and a major provider of loans backed by crypto. The platform is the latest upon which Cardano has now been launched, which will certainly go a long way towards increasing both the value and price of ADA even more in the weeks to come.
Nexo
Among Nexo’s various financial services, the platform allows its users to not only purchase cryptocurrency via fiat currency (such as EUR, GBP, or USD), but it also enables clients to earn a considerable amount of interest on the fiat investments or cryptocurrency holdings. Borrowing fiat currency via cryptocurrency as collateral is also possible thanks to Nexo.
Nexo had initially begun providing cryptocurrency-backed loans (it was the first to do so, in fact) back towards the end of 2017. The loans had been given out thanks to assistance from Credissimo, which is one of the world’s leading fintech groups based in Malta and founded back in 2007.
Benefits of the integration
As per a blog post penned by Nexo’s representatives, the abovementioned integration with Cardano shall allow users to purchase ADA tokens on Nexo’s exchange. As of right now, the current trading pairs which are available are ADA/BNB, ADA/ETH, ADA/BTC, ADA/USDC, ADA/USDT, ADA/GBP, ADA/EUR, ADA/HUSD, and ADA/USD. Furthermore, a maximum of 8% interest (annualised) can be earned on the ADA that is kept in the wallet that Nexo provides. The interest will also be paid out on a daily basis. Additionally, fiat currency can be successfully borrowed (almost instantaneously) against ADA, with the rates beginning from 6.9% APR. A 30% allowance for the ratio of loan-to-value will also be given.
Nexo’s managing partner and co-founder, Antoni Trenchev, had stated that institutions such as Cardano and Nexo possess immense potential for helping one another experience even greater success than what has already been achieved by each organization on its own. As Nexo adds some much-needed utility for ADA, which will also decrease its selling pressure, add new users and finally increase its value, Cardano, in return, will help Nexo gain more clients and broaden its market, Antoni added.