Nexo Adds Binance Coin as Collateral for Instant Crypto-Backed Loans

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The world of decentralized finance (DeFi) continues to evolve rapidly, with leading platforms enhancing their offerings to meet growing investor demand. One significant development in this space is Nexo’s integration of Binance Coin (BNB) as a supported collateral asset for instant crypto-backed loans. This strategic move expands financial flexibility for BNB holders while reinforcing Nexo’s position as a key player in the crypto lending ecosystem.

Expanding Collateral Options for Crypto Investors

As of July 1, 2018, BNB holders can now use their tokens as collateral to secure instant loans through the Nexo platform. This addition marks a milestone in the ongoing effort to increase utility for major cryptocurrencies beyond simple trading or speculative holding.

Nexo enables users to borrow funds in USD, EUR, and USDT (Tether) without selling their digital assets. By using crypto as collateral, investors maintain exposure to potential price appreciation while gaining immediate liquidity. This model has proven especially valuable for crypto miners, hedge funds, ICO teams, and long-term holders who need working capital without triggering taxable events.

“Adding BNB to our growing list of collateral options extends choice for our customers and adds further utility to Binance Coin,” said Antoni Trenchev, Managing Partner at Nexo. “Our ultimate goal is to create value for the community and the broader crypto ecosystem.”

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Why Binance Coin Makes a Strong Collateral Asset

Launched in July 2017 by Binance, BNB quickly rose to become one of the top cryptocurrencies globally, with an initial market cap exceeding $145 million and rapid growth thereafter. Originally issued during an ICO that raised $15 million, BNB has demonstrated resilience even during bear markets—often outperforming Bitcoin in relative stability.

Beyond its market strength, BNB offers real-world utility within the Binance ecosystem:

This established use case makes BNB an attractive and reliable collateral option for lenders like Nexo, which prioritizes assets with strong fundamentals and widespread adoption.

How Nexo Is Shaping the Future of Crypto Lending

Since launching its platform in April 2018, Nexo has emerged as a pioneer in instant crypto credit solutions. The company raised $52.5 million through an oversubscribed private token sale earlier that year, signaling strong investor confidence.

What sets Nexo apart is its ability to deliver real-time financial products post-token generation—a rarity in the blockchain space. Unlike many projects that remain conceptual for months or years after fundraising, Nexo moved swiftly into operational lending.

Moreover, the platform supports multiple high-value cryptocurrencies as collateral, including:

Holders of the NEXO token receive a 50% interest reduction on loans and are eligible for 30% of company profits distributed as dividends, creating powerful incentives for long-term engagement.

Growing Demand Across the Blockchain Ecosystem

The decision to accept BNB reflects broader trends in the industry. To date, over 40 blockchain companies have formally requested that their tokens be added as collateral on the Nexo platform. This surge in interest highlights two critical developments:

  1. Projects recognize the value of providing liquidity options to their communities.
  2. There is increasing demand for bridges between traditional finance and digital asset economies.

Nexo functions as exactly such a bridge—offering regulated, user-friendly financial tools powered by blockchain innovation.

The Technology and Trust Behind Nexo

Nexo is powered by Credissimo, a well-established FinTech group with over a decade of experience serving millions of customers across Europe. Credissimo operates under strict regulatory oversight from multiple European banking and financial authorities, ensuring compliance, security, and transparency.

This foundation allows Nexo to scale rapidly while maintaining high standards in risk management and customer protection—key factors for institutional adoption and long-term sustainability.

Unlocking Value in a $5 Trillion Market

With digital assets now representing a multi-trillion-dollar market, platforms like Nexo play a crucial role in unlocking latent value. Instead of forcing investors to sell during volatile periods, crypto-backed lending preserves portfolio integrity while enabling access to fiat capital.

As more users seek ways to leverage their holdings productively, services offering instant loans against crypto collateral will continue gaining traction—especially those combining speed, security, and scalability.

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Frequently Asked Questions (FAQ)

Q: Can I lose my BNB if I take out a loan using it as collateral?
A: Yes—if the value of your BNB drops significantly and you fail to repay or top up your loan, Nexo may liquidate part of your collateral to cover the debt. Maintaining a healthy loan-to-value ratio is essential.

Q: What currencies can I borrow against my BNB?
A: You can borrow in USD, EUR, and USDT (Tether), depending on availability and platform policies at the time of borrowing.

Q: Are there any advantages to using NEXO tokens instead of BNB?
A: Yes. NEXO token holders get a 50% discount on interest rates and receive 30% of company profits as dividends—benefits not available with other collateral types.

Q: Is this service available worldwide?
A: While Nexo serves users globally, certain jurisdictions may have restrictions due to local regulations. Always check eligibility before applying.

Q: How quickly are loans disbursed?
A: Loans are processed instantly upon confirmation of collateral, making it one of the fastest liquidity solutions in the crypto space.

Q: Does using BNB as collateral affect my ability to trade or transfer it?
A: Once pledged, your BNB is locked as collateral and cannot be transferred or traded until the loan is repaid or refinanced.

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