Cryptocurrency lender Nexo reported that retail clients have access to the loans with collateral in the form attached to the price of gold stablon PAXG. This became known The Block.
Before this opportunity could available only to institutional clients of the company.
ERC-20 token PAXG is the same as one ounce of gold and could be redeemed for physical gold bullion in partner organisations, for example, in the new York Bullion Exchanges of London, or Brink’s.
«With Nexo and PAXG the client can invest in physical gold and use PAXG as collateral, receiving 70% of the amount invested in the form of a loan with an annual interest rate of 5.9% per annum», – said the co-founder of Nexo Anthony Trenches.
According to Trencheva in the current high volatility, the demand for the new product was «phenomenal».
Customers, of which the company has 650 million, can also Deposit with annual interest rate up to 8% per annum.
Earlier, SEO landing platform announced forecast bitcoin reach $50,000 in the current year.