Featured image from Nexo.io, Charts from TradingView.com
There really is never a dull moment in DeFi. Reports were released this week that interest-generating platform Nexo is continuing to acquire an SEC licensed broker in an attempt to offer a “modified version” of the company’s products. It is not clear what impact this would have on their current offering.
The move comes at a time when rocky roads appear to be increasing for DeFi platforms.
Interest-generating products and disruptive DeFi
Along with the search for a broker licensed by the company, Nexo is also in talks with nationally chartered banks. The platform is said to be interested in finding a partner bank that will sell Nexo products, presumably with the intention of gaining better adherence with US regulators.
Additionally, reports indicate that the platform is considering seeking an exemption for offering securities to unaccredited investors. Nexo is a London-based platform, which can prove to be a substantial advantage over its US competitors.
In recent weeks, US state regulators have started to focus on US-based DeFi platforms namely Celsius and BlockFi. Regulators in a handful of U.S. states have started issuing cease and desist requests for both companies. Meanwhile, the main US exchange Coinbase has had discussions with the SEC regarding the exchange’s potential product, Coinbase Lend. Coinbase now appears to have suspended a loan schedule indefinitely, should the product even come to life.
Nexo will likely monitor these situations closely in the coming months, so that they can position themselves accordingly when US regulators begin to focus on non-US interest-generating companies operating in states.
Native platform tokens, like $NEXO, have stayed away from U.S. integration as regulatory decisions still leave outcomes in question. | Source: NEXO-USD on TradingView.com
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The road less traveled
Amid the DeFi madness with regulators, Nexo has always grown its capabilities and offerings. In an email this week, the company announced it is adding top-ups, withdrawals, borrowing, and income with DOGE. At the beginning 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 free and unlimited internal withdrawals.
Nonetheless, Nexo co-founder Antoni Trenchev said overseas exchanges will have to “cross the same bridge” that Celsius and BlockFi currently have to cross, in due course. “We haven’t quite decided on the particular variations of the exemptions and exactly how we’re going to structure that,” Trenchev added.
Will Nexo have the benefit of seeing how things go for US-based companies, or will overseas platforms come under more scrutiny? Consumers are waiting for the regulatory movement to pace the snail to determine how things play out.
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