Nexo Launches Crypto-Backed Lending Service in Australia
Summary
- Nexo said it has launched a crypto-backed lending service in Australia.
- Nexo said its Australian users can borrow Australian dollars or stablecoins against their cryptocurrency holdings.
- The company said interest rates vary from 0.9% to 21.9% a year, and users could lose their collateral if cryptocurrency prices plunge.
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Nexo, a cryptocurrency lending platform, has launched a crypto-backed lending service in Australia.
Cointelegraph reported on August 19 that Nexo rolled out the service on August 18 after obtaining credit representative status under Australia’s National Consumer Credit Protection Act.
Nexo users in Australia can borrow Australian dollars or stablecoins against their cryptocurrency holdings. Funds are typically disbursed within 24 hours of an application.
The company does not charge loan origination fees. Interest rates range from 0.9% to 21.9% a year, depending on the loan product and the user’s loyalty tier.
If cryptocurrency prices fall sharply, borrowers may be required to post additional collateral or face forced liquidation. Nexo said users could lose part or all of their collateral depending on market conditions.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul