Nexo partners with TRON to offer TRX-backed fiat loans

Written by: Jinia Shawdagor
August 2, 2020
  • This addition has offered crypto enthusiasts the first-ever TRX-backed fiat loans.
  • According to Nexo, partnering with TRON will help it pursue a DeFi-enhanced finance model.
  • Through this partnership, TRX holders will benefit from attractive yields and faster transactions.

Nexo, a top regulated financial institution for cryptocurrencies has joined hands with TRON to expand its Instant Crypto Credit Lines service. Through this collaboration, TRX has joined other leading cryptocurrencies through which Nexo offers staking services, allowing users to earn interest. These include BTC, ETH, XRP, BCH, LTC, EOS, LINK, XLM, USDT, USDC, PAX, TUSD, BNB, and DAI. Nexo unveiled this news on July 29 via a blog post, noting that this move has given birth to the first-ever TRX-backed fiat loans.

According to the blog post, this partnership will grant TRX holders access to Nexo’s Earn on Crypto product, which allows crypto adopters to earn up to 5% interest on crypto and up to 10% interest on stablecoins and fiat. Per Nexo, it joined hands with TRON because the coin’s ecosystem boasts flexible applications, a high throughput network, and a decentralized blockchain network.

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Commenting on this development, Nexo’s co-founder and managing partner said,

“When blending elements from DeFi into CeFi you get the best of both worlds. TRON’s blockchain technology enables developers to create smart contracts and decentralized applications (DApps), displaying how the TRX integration is yet another step towards the Defi-enhanced centralized finance model Nexo is pursuing.”

A symbiotic partnership

Expressing his joy over TRX’s addition to Nexo’s Instant Crypto Credit Lines service, TRON’s founder, and CEO, Justin Sun said,

“We support Nexo’s vision for blockchain technology exploration in CeFi to DeFi. Nexo and TRON marry desirable attributes from two different philosophies. Together, TRX users now enjoy attractive yields and faster transactions with secure infrastructure. Our mission is to bring blockchain to everyone and Nexo empowers our ability to do so.”

Per the publication, this addition will increase TRX’s utility features and minimize selling pressure. On top of this, it is set to make holding the coin stress-free. TRX-backed loans will reportedly let investors borrow against their assets instead of selling them. Additionally, the investors will benefit from Nexo’s unparalleled interest rates and tax-efficient service.

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A great many benefits for TRX holders

This partnership offers TRX holders numerous perks. For instance, Nexo claims that they are offering the best borrowing rates, which start from 5.9% APR based only on what is actually used. It is important to note that £385 is the minimum loan amount users can take/withdraw, and £1.54 million is the maximum. However, larger amounts can be available on request. Furthermore, users are not required to pay any fees; there are no hidden charges or FX commissions. They can get money withdrawals in their local banks within 24 hours. These offerings are available in more than 40 traditional currencies in 200 jurisdictions across the globe.