Leading cryptocurrency lending and savings platform Nexo has partnered with Fidelity Digital Assets (FDA), the digital arm of financial services giant Fidelity Investments, to expand institutional access to cryptocurrencies.
Nexo Partners with Fidelity
Following the collaboration, both firms will develop a comprehensive product suite and compliant infrastructure for institutional investors seeking to gain exposure to cryptocurrencies, Nexo said in a press release shared with CryptoPotato.
In addition, the duo will offer quality custodial and lending services as well as launch innovative products developed specifically for institutional clients.
Unrestricted Access to Crypto
Under the agreement, Fidelity’s institutional customers will have unrestricted access to Nexo’s products, including the company’s crypto prime brokerage, while expanding Nexo’s ability to increase its assets under management.
Nexo’s custodial layer will also be upgraded to military-grade security infrastructure, keeping investors safe at all times, the announcement added.
Commenting on the development, Kalin Metodiev, co-Founder and Managing Partner at Nexo, said the partnership will enable customers to use the credit and trading products while relying on FDA’s advanced custody and security infrastructure.
“Working with Fidelity Digital Assets is the latest milestone in our quest to offer a complete institutional platform and to onboard traditional finance companies into the digital asset ecosystem,” Metodiev added.
Christopher Tyrer, Head of Fidelity Digital Assets Europe, noted that the move creates an opportunity for the duo to deliver a robust and seamless solution for their customers, adding:
“We’re thrilled that our best-in-class operational controls and security expertise will be extended to the assets of Nexo’s customers, while the ability for Fidelity Digital Asset’s clients to access Nexo’s lending solutions will help us deliver a richer experience to meet our clients’ evolving needs.”
The development comes less than a month after Nexo announced a $100 million buyback program for its native cryptocurrency dubbed NEXO.
Surging Institutional Interest in Crypto
In recent times, there has been a growing interest in cryptocurrencies from institutional investors, who hope to also participate in the opportunities associated with the asset class.
While several institutional clients have gained exposure to cryptocurrencies via direct and indirect investments, the interest in crypto assets from these investor classes has continued to surge.
According to a report in July, as part of its efforts to the growing institutional interest in cryptocurrencies, FDA said it will hire 100 employees, which would see its staff strength surge by up to 70%.