Nexo in Miami: The crypto interest account behemoth discusses DeFi and institutional adoption.

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Nexo believes that, in the long term, regulation will benefit crypto more than it will harm it.

While decentralised finance has stolen the show with big-number headlines over the last year, with the closely-watched Total Value Locked (TVL) figure rising nearly 800%, from $20 billion at the start of 2021 to $157 billion at the peak in May, centralised crypto financial services have also experienced explosive growth.

 

According to Kalin Metodiev, CFA and co-founder of Nexo, the crypto savings account startup has grown fourfold to $15 billion in AUM, extended to 1.7 million clients, and is working on additional features such as asset exchange capabilities embedded into the platform.

Nexo and Cointelegraph only met briefly in Miami, during a quick talk at the Nexo-sponsored Bitcoin Art Gallery, which was one of the conference hall’s highlights. However, immediately after the pandemonium stopped, we got up with Metodiev for a written interview to discuss important KPIs growing, the threats DeFi poses to Nexo’s strategy, and a roadmap forwards for institutional adoption.

 

Adapting to Defi

Nonetheless, the business continues to closely monitor the burgeoning industry and is “open to learning and adopting new best practises from any source at any time, including the DeFi space.”

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At the present, this takes the shape of a few efforts geared at making Nexo more appealing to DeFi customers. They include governance features for the NEXO token, which has dropped to $1.91 from $4 highs earlier this year, and a transparency campaign that, though it may not compete with on-chain information, Metodiev thinks will lead the field.

 

Nonetheless, the business continues to closely monitor the burgeoning industry and is “open to learning and adopting new best practises from any source at any time, including the DeFi space.”

At the present, this takes the shape of a few efforts geared at making Nexo more appealing to DeFi customers. They include governance features for the NEXO token, which has dropped to $1.91 from $4 highs earlier this year, and a transparency campaign that, though it may not compete with on-chain information, Metodiev thinks will lead the field.

 

“Our most recent #NexoTransparency initiative commenced with the shedding of ample light on our custody arrangements and insurance coverage. We employ multiple partners for the completion of Nexo’s institutional framework and we wished to be transparent on the details.”

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Compliance and adoption

As institutional adoption seems perpetually hamstrung by legal and regulatory woes, Metodiev argues that Nexo can play a key role in getting big bank money involved in crypto.

“Some people proclaim that Blockchain-based financial services should detach from the traditional banking system and somehow thrive in their own little bubble. We find such opinions to be comical and outright phantasmagorical in the modern financial system of the 21st century.”

He stated that institutional customer growth has been “exponential,” and that the quantities have been “extraordinary” at times: Nexo is capable of assisting institutions in accumulating and borrowing up to “$1 billion” in cryptoassets.

He acknowledges that the regulatory climate is still opaque, stating that it is “difficult to be compliant if a complete set of rules for companies, such as Nexo, are not in place,” but that the firm works to be compliant whenever feasible. Furthermore, contrary to popular belief, unambiguous regulation may benefit the area more than it harms it.

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“We believe that regulations can lead to more business, not less, in the long run, and we hope that more companies in the Blockchain industry will follow our lead on compliance, transparency, and impeccable service.”

 

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