There’s truly never a dull moment in DeFi. Reports have actually emerged today that interest-yielding platform Nexo is pursuing an acquisition of an SEC certified broker dealer with the intent to provide a “modified version” of the business’s items. How this would impact their current offering is unclear.
The relocation comes at a time of relatively increased rocky roadways for DeFi platforms.
Interest-Generating Products & Disruptive DeFi
Along with the company’s pursuit of a licensed broker dealer, Nexo is also in talks with nationally chartered banks. The platform is supposedly thinking about discovering a chartered bank partner that will offer Nexo items, most likely with the intent to have much better buy-in with U.S. regulators.
Additionally, reports state that the platform is looking at applying for an exemption to offer securities to non-accredited investors. Nexo is a London-based platform, which might play out to be a considerable benefit versus competitors that are stateside.
In recent weeks, U.S. state regulators have started to focus on DeFi platforms that are U.S.-based, namely Celsius and BlockFi. Regulators in a handful of states in the U.S. have actually started providing stop and desist needs for both companies. Meanwhile, major U.S.-based exchange Coinbase has been in a back-and-forth with SEC with regards to the exchange’s potential interest-yielding product, Coinbase Lend. Coinbase appears to have actually now put an indefinite hang on a schedule for Lend, ought to the item even come to life at all.
Nexo is likely taking a close eye to see how these situations play out in the coming months, so they can position themselves accordingly when stateside regulators start eyeing non-U.S. based interest yielding firms that are operating in the states.
The Road Less Traveled
During the middle of the DeFi insanity with regulators, Nexo has actually still been developing on it’s abilities and offerings. In an email this week, the firm announced the addition of top-ups, withdrawals, and borrowing and earning with DOGE. At the start of September, the platform crossed 2M users. And last month, the platform introduced free and instant transfers from one Nexo wallet to another, as well as unlimited free internal withdrawals.
Nonetheless, Nexo co-founder Antoni Trenchev has actually stated that abroad exchanges will need to “cross the same bridge” that Celsius and BlockFi are presently needing to cross, in due time. “We haven’t quite decided on the particular variations of the exemptions and exactly how we’re going to structure this,” added Trenchev.
Will Nexo have the benefit of seeing how things play out for U.S. based companies, or will overseas platforms go through increased examination? Consumers are left waiting for the snail-paced regulatory movement to determine how things play out.
