US-based crypto lending and savings firm Nexo has partnered with Fidelity Digital Assets (FDA) to offer cryptocurrency services to institutional investors.
Under this, Nexo will use the FDA's asset management infrastructure to deliver services to institutional investors. The deal also includes developing new products such as loans linked to Bitcoin.
The system will also be further strengthened to provide services to institutional investors in a secure manner. Nexo claims that its existing security system is also very strong.
“Institutional investors are increasingly interested in digital assets. We are committed to providing these investors with solutions tailored to their needs,” said Christopher Tyrer, FDA, Europe Head.
Investments in the crypto segment from large investors are also increasing. A report by Bank of America (BofA) also recognizes that the size of the crypto segment is continuously increasing and this segment cannot be ignored.
BofA reports that institutional investors have poured nearly $17 billion into the decentralized finance (DeFi) ecosystem in recent years.
DeFi Systems aims to provide an autonomous and decentralized option for financial services controlled by banks and regulators.
Big investors have been avoiding investing in this segment due to several reports of hacking attacks on crypto-related firms.
“Our clients will now be able to make the most of our credit and trading products with the custody and security solutions of Fidelity Digital Assets,” said Kalin Metodiev, Nexo's Co-Founder and Managing Partner.
Recently Nexo also launched a $100 million buyback program for tokens associated with its platform.
Recently the US Federal Bureau of Investigation (FBI) issued a warning against crypto scams. Cryptocurrencies are decentralized and for this reason it is difficult to recover funds when locked out.
Scammers get their crypto payment instantly, after which they deposit it into their other accounts. Apart from this, some crypto related firms have also lost millions of dollars due to hack attacks.