Bitcoin

Bitcoin Daily: Paxos Gold Can Now Be Lending Collateral

Nexo

Nexo, the digital currency lending platform, is now letting retail investors utilize PAX Gold as loan collateral, Cointelegraph reported. Last year, an experimental program had been restricted to institutional customers and reportedly experienced instant demand for its credit lines backed by gold.

Now, the program’s growth to encompass retail clients lets anyone use those assets as collateral on the platform of the company. Nexo Co-founder Antoni Trenchev said, according to the announcement, “Especially in high-volatility times, as in the present, gold is sought after by many of our retail clients and we have worked towards reflecting their wishes.”

The PAX Gold token of Paxos was rolled out in September of last year. It can be redeemed and is backed by physical gold that is kept in safe vaults. One fine troy ounce of London Good Delivery Gold is represented by every token. It allows ownership of the precious metal as a safe-haven asset in addition to the accessibility that tokenization provides.

Last year, Nexo was launching a Mastercard-branded digital currency credit card that was to allow consumers to spend the value of their cryptocurrency. It was reported at the time card was the first one worldwide to enable users to spend the value of their cryptocurrency without, in fact, spending the digital currency.

The company said, according to the outlet, “When using the Nexo Card to purchase goods and services, you actually pay using your Nexo flexible open-ended revolving credit line that is backed with your crypto holdings and thus not selling any of them, which is giving you the freedom to spend today and sell your holdings whenever you want in the future to pay back the loan.”

The card comes with payments in local currencies, various repayment options and no annual/monthly charges, among other functions. At the time, it was also noted that the company provided a completely automated Instant Crypto Credit Lines offering.

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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