In a pioneering move for the crypto lending space, back in June, Nexo’s Finance team engaged Armanino LLP – a PCAOB- certified auditor and one of the leading accounting firms in the US, which counts Kraken, Uber, and DoorDash among its clients – to provide attestations over assets and liabilities.
Nexo is pleased to announce that Armanino now offers a real-time attestation of Nexo's custodial assets, showing the company’s assets always exceed liabilities.
What Does Nexo’s Real-Time Attestation Mean for Your Assets?
Fully-Backed: Your holdings on Nexo’s platform are backed by assets by more than 100%.
Properly Managed: Third-party assurance that your funds on the Nexo platform are properly managed and accounted for.
Always Available: 24/7 proof of Nexo’s ability to meet all liabilities owed to you at any time.
In becoming the first crypto lender to publicly open its books through an independent, real-time attestation, Nexo is establishing a transparency benchmark and nurturing customer trust yet again, thus setting a prime example for others in the industry to follow.
You can view today’s real-time attestation on the Nexo attest report page.
This latest development is another compliance milestone in addition to the financial audit under PCAOB audit standards that we are currently undergoing. It also represents a significant step forward in Nexo’s transparency and compliance journey and marks only the beginning of a routine Proof of Reserves program. The next step will allow each client to verify for themselves that their particular assets are included in the daily reports.
Antoni Trenchev, Co-founder and Managing Partner of Nexo, commented on the Armanino attestation by saying:
In the long run, the companies that provide their customers the necessary transparency, security and peace of mind, will win. Amidst increased regulatory interest in the cryptocurrency industry, we at Nexo are setting the bar high so as to prove to our clients and investors that the assets entrusted to us are indeed in good hands, a testament to which is the independent attestation by Armanino. We challenge other lenders and crypto leaders to follow our lead.
The Current Landscape
For fintech businesses looking to retain customer trust, proving reserves has become imperative. Customers need assurance that their funds are properly managed. Due to their nature, digital assets offer a high level of transparency, but the innate auditability of cryptographic assets has been largely untapped.
This needs to change. Why? Because we believe that the cryptocurrency space is capable of providing a level of assurance and accountability that surpasses the traditional financial services industry by a wide margin. In the 2007-2008 financial crisis, banks were exposed for a lack of risk management, control, and governance, as well as inadequate auditing processes. We don’t need to repeat history, instead we need to learn from it and implement the necessary procedures to prevent similar issues.
The real-time attestation from Armanino, coupled with Nexo’s proactive stance on regulation and years of following the traditional licensing procedures around the globe, is testimony to the company's resolve and ability to adapt to changing circumstances and to best protect and serve its clients’ interests. This positions the company ahead of the curve as it gears up to join the prime brokerage race, launch its asset management division, and welcome institutional demand as one of the most secure, progressive, and compliant businesses.
Grassroots cryptocurrency adoption around the globe has jumped over 880% in 2021 even without the proof of solvency, clear regulation, and the accessibility we want to see and strive to promote in our esteemed space. But we believe that with self-regulation as a working solution and active industry engagement with regulators, the digital assets industry will thrive.
Armanino’s attest is the latest development in the #NexoTransparency campaign and solid proof that Nexo is well-equipped to withstand any challenge, whatever it might be, as well as to welcome the next wave of customer demand that targets the most secure and compliant businesses.
Armanino LLP (www.armaninollp.com) is one of the 25 largest independent accounting and business consulting firms in the nation. Armanino provides an integrated set of attestation, tax, business management, consulting and technology solutions to companies in the U.S. and globally. The firm helps clients adapt and change in every stage of business, from startup through rapid growth to the sale of a company. Armanino emphasizes smart technology, leading a cloud revolution of financial, operational, sales and compliance tools that are transforming the way companies do business. The firm extends its global services to more than 100 countries through its membership in Moore Global, one of the world's major accounting and consulting membership organizations. In addition to its core consulting and accounting practices, Armanino operates its division, AMF Media Group (www.amfmediagroup.com), a media and communications services agency. Its affiliate, Intersect Capital (www.intersectcapitalllc.com) is an independent financial planning, wealth and lifestyle management firm.