Fidelity is a commercial custody services provider that has been dabbling in the cryptocurrency space for a long time. The management of Fidelity recently announced a partnership with the Nexo lending platform. The partnership aims to offer Bitcoin professional products and financial services on a commercial level.
According to an official statement issued by Nexo on Tuesday, the lending platform is going to take advantage of the vast commercial network of Fidelity to expand the operative circle of the brokerage enterprise. The management of Fidelity Digital Assets told media that with the new venture, Nexo would be able to enhance its asset under management portfolio.
As per media reports, Fidelity Digital Assets is going to leverage the military-grade secure financial bookkeeping services from Nexo. The new venture is working on introducing a tri-party financial investment option for commercial investors. As pointed out by the management of both organizations, several Wall Street banks are also looking for lending options that use Bitcoin as collateral.
The report further explained that the Nexo-Fidelity venture would add a third-party leveraging agent to offer commercial Bitcoin-backed loans. The main reason for using third-party leveraging services is to ensure that the model is highly favoured by traditional financial institutions.
Fidelity has been acting as a market leader in converting traditional financial services to the cryptocurrency spectrum. The custodial services firm partnered with BlockFi last year in December. The report was covered by Bloomberg that revealed that the BlockFi partnership allowed Fidelity investors to buy, sell, and hold Bitcoin reserves.
In March this year, Fidelity joined hands with another Bitcoin lending platform named Silvergate. Co-founder and managing director of Nexo, Kalin Metodiev, recently told media that the enterprise would be able to make use of its credit-lending services for enterprise clients with the assistance and support of bespoke custodial provider Fidelity. Nexo claims to offer lending services against 40 fiat currencies to 2.3 million clients across the globe.