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Nexo Adds Support for TRON’s TRX as Demand for Crypto Lending Climbs

Decentralized finance (defi) is continuing to make strong inroads on the traditional banking sector as demand for crypto-based lending and borrowing services soars. In another positive development for the rapidly growing industry, Nexo, a regulated platform for digital assets, has announced support for TRX. Since raising $52.5M in 2018, Nexo has processed over $2B for more than 700,000 users across an incredible 200 jurisdictions. TRON’s TRX has consistently been one of the most popular cryptocurrencies since its launch in 2017, sitting just outside the top 20 with a market cap of $1.3B.

The union will add TRX to the considerable list of coins Nexo accepts as collateral for Instant Crypto Credit Lines. The service allows users to collateralize loans with their crypto holdings, borrowing stablecoins or fiat at an APR starting from 5.9%.

Loans collateralized in crypto have a number of advantages. Notably, they can be easily accessed without the need for credit checks, which holds true for both centralized and decentralized crypto lending. At present, the only big qualifier for Nexo borrowers and lenders of TRX is that the minimum collateral for an Instant Crypto Credit Line is $500 with the maximum amount set at £2M.

Save and Earn

Nexo has just launched a high-yield interest service, Earn on Crypto. Following Nexo’s acceptance of TRX, TRON holders are now able to access this high interest-bearing product. It allows users to deposit TRX into their Nexo wallet to secure daily cumulative interest payments at a rate of 5% APR. This compares favorably to traditional banks that typically offer monthly payments with an APR of less than 1%.

TRX joins cryptocurrencies such as BTC, ETH, XRP, EOS, and USDT that are accepted as collateral by Nexo. Announcing the rollout of TRX, Antoni Trenchev, Nexo’s co-founder and Managing Partner, said: “When blending elements from defi into cefi you get the best of both worlds. TRON’s blockchain technology enables developers to create smart contracts and decentralized applications, displaying how the TRX integration is yet another step towards the defi-enhanced centralized finance model Nexo is pursuing.”

Make Love, Not War

While the popular narrative in cryptocurrency is often that of centralization vs decentralization and cefi vs defi, the synergy between Nexo and TRON is a demonstration of what can be achieved when organizations from either side of the fence come together in mutual harmony.

Meanwhile, TRON continues to work on its defi platform, JUST. The proposal from Justin Sun’s team includes borrowing and lending functionality as well as JUST BTC, a TRC20 token pegged 1:1 with bitcoin. While much of the excitement and noise in the defi world has so far been focused on the Ethereum ecosystem, TRON’s developers are doing all they can to close that gap.