Top asset management firm Fidelity is looking to expand its crypto-product offerings with new lending services to institutional investors. The company has partnered with crypto lending and exchange provider Nexo for the new initiative.
In an announcement made Tuesday, Fidelity Digital Assets, a cryptocurrency subsidiary under Fidelity, will develop crypto lending and custodial products for institutional investors. Nexo will act as the custodian and collateral agent and will leverage Fidelity’s security architecture to expand institutional access to its brokerage services.
The new partnership will allow Fidelity to expand its portfolio of assets under management and offer an additional custody layer to Nexo’s military-grade security infrastructure, per the announcement.
“As a result, institutional clients will enjoy tri-party structures that combine Nexo’s unparalleled lending solutions with Fidelity Digital Assets’ market-leading asset protection,” the statement read.
Kalin Metodiev, CFA, Co-Founder and Managing Partner at Nexo, said:
“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. Our client base will now have full use of our industry-leading credit and trading products with reliance on Fidelity Digital Assets’ bespoke custody and security solutions.”
Founded in 2018, Nexo provides cryptocurrency-backed loans, buying and selling, payment services, and insurance services, with partnerships ranging from several crypto-related companies such as BitGo, Paxos, and Circle.
