Cryptocurrency lending platform Nexo has partnered with Fidelity Digital Assets (<a href="https://www.cryptoknowmics.com/news/as-demand-for-bitcoin-rises-fidelity-digital-assets-expands-its-workforce/">FDA</a>), a custody services provider to provide institutional access to digital assets with custodial and lending services. In addition to offering custodial and lending services, the firms will launch innovative products specifically developed for institutional clients.
<h2><strong>Nexo and Fidelity Digital Assets Announce Partnership</strong></h2>
The <a href="https://www.businesswire.com/news/home/20211207005739/en/Nexo-Expands-Institutional-Access-to-Crypto-in-Collaboration-with-Fidelity-Digital-Assets" target="_blank" rel="nofollow noopener">partnership</a> with Fidelity Digital Assets will allow Nexo to extend its asset portfolio, add a second custody level to its security architecture while providing investors access to Nexo's services as well as crypto prime brokerage.

Nexo Co-founder and managing partner Kalin Metodiev said of the partnership:
<blockquote><em>“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.”</em></blockquote>
This isn’t the first time Fidelity Digital Assets has dabbled in bitcoin-backed loans. In December 2020, the asset management firm collaborated with BlockFi. In March, it formed another partnership with Silvergate for crypto lending services. Nexo is the latest lender to leverage Fidelity’s institutional custody and trading platform for the service.

Christopher Tyrer, Head of Fidelity Digital Assets Europe, noted the growing demand for cryptocurrency from institutional clients.
<blockquote><em> “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.”</em></blockquote>
Nexo has served more than 2.5 million customers in 200 jurisdictions, offering bitcoin-backed loans in over 40 fiat currencies. Fidelity Digital Assets is the crypto arm of Fidelity Investments, an asset management <a href="https://www.cryptoknowmics.com/news/fidelity-investments-pushed-sec-to-approve-bitcoin-etf/">company</a> that manages more than $7 trillion of client assets.
<h2><strong>Institutional Demand for Cryptocurrencies</strong></h2>
In recent times, there has been a growing interest in cryptocurrencies from institutional investors with several institutional clients have gained exposure to the nascent asset class via direct and indirect investments.

As part of its efforts to the growing institutional interest in cryptocurrencies, Fidelity Digital Assets (FDA) said it will hire 100 employees, which would see its staff grow by up to 70%.

Nexo and Fidelity Digital Assets to Offer Lending Service for Institutional Clients

Nexo has partnered with Fidelity Digital Assets (FDA) to provide institutional access to digital assets with custodial and lending services.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Nexo and Fidelity Digital Assets to Offer Lending Service for Institutional Clients

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