PAXG Instant Crypto Credit Line Now Available for Retail Clients

6 min read
Asset Updates

At Nexo, we prioritized our users’ requests and are now thrilled to reveal that our PAXG-backed Instant Crypto Credit Lines are open to our full range of clients. Since we launched our gold-backed credit lines for institutional clients in 2019, we saw unprecedented demand for the product which prompted Nexo to purchase $5 million worth of PAXG to meet our investors’ needs. From there, we worked tirelessly on adapting the popular PAXG credit lines to suit our retail customers.

PAXG is a regulated token from Paxos Trust Company that is backed by one ounce of premium, institutional-grade Good Delivery gold. Moreover, PAXG allows for large-scale fractional ownership and inclusive participation in the growth potential of gold. These characteristics make working with the asset a firm step forward in Nexo’s long-term goal of offering profitable and accessible investment opportunities for all.

Nexo’s PAXG-backed Crypto Credit Lines mark a new chapter for gold as clients benefit from the best of both worlds: Physical gold’s safe-haven status along with the transferability, cost-efficiency, and ability to borrow against tokenized gold provided by blockchain technology.

In addition to all this, making PAXG available for Nexo’s Instant Crypto Credit Lines™ greatly increases the asset’s utility features, eases selling pressure and makes HODLing easier in the long run. PAXG-backed Crypto Credit Lines will allow gold investors to borrow against their assets rather than selling them when in need of liquidity while benefiting from Nexo’s completely unrivaled interest rates and superior tax-efficient service.

Get a PAXG-Backed Credit Line

Nexo’s Instant Crypto Credit Lines™ offer considerable advantages:

  • The best borrowing rates starting from 5.9% APR only on what you use
  • $100 million insurance on custodial assets through Lloyd’s of London
  • Cold storage in bank-grade Class III vaults
  • A minimum amount of $500, a maximum $2,000,000 (larger amounts available upon request)
  • #ZeroFees — no hidden fees, no FX commissions
  • Automated instant approval with no credit checks
  • No installments and no minimum loan repayments
  • Same/next day free local bank withdrawals
  • Available in 40+ fiat currencies across 200+ jurisdictions

See this quick guide on how to access Nexo’s instant crypto-backed loans in three easy steps.

Nexo’s PAXG Instant Crypto Credit Lines in the Current Market Environment

With the high demand Nexo experienced prior to releasing this product, it is only fitting that we share the multifaceted considerations behind the conception and creation of the best possible gold-backed credit lines.

First, let’s discuss PAX Gold. Through PAXG, PAXOS offers investors the most efficient, and at the same time secure way to get exposure to the price of gold. The minimum PAXG investment is just $15 and PAXG’s fee structure is among the main aspects that differentiate it from similar gold-backed stablecoins. There are no custody fees and the low on-chain Ethereum transaction fees of 0.02%, as well as the lack of storage and banking fees, make it stand out among competitors such as DGX, who charge an on-chain transaction fee of 0.13% and a storage fee of 0.6%.

The redemption to either physical or unallocated gold is a further advantage, as is PAXG’s listing with major exchanges such as Kraken, itBit and HitBTC. Additionally, PAXOS’ strict regulatory compliance driven by the NYDFS as well as the regular public attestations have won PAXG a reputation as one of the most regulated gold tokens. All of these advantages made it a great digital gold token to pioneer Nexo’s gold-backed credit lines.

Nexo widening access to tokenized gold through the PAXG Instant Crypto Credit Lines is also an important development in times of significant financial turbulence. Fear surrounding COVID-19, a potential global recession, a price war between oil-producing countries and other interconnected factors are increasing market uncertainty, naturally pushing investors into assets perceived as safe havens among which is gold.

During such major economic challenges, often the wealthiest are the ones to recover the fastest. The majority of the population remains impacted in the longer term by depreciating assets and depleted savings. Given the current circumstances, it is vital that Nexo offers its PAXG Instant Crypto Credit Lines to all users, not just institutional or wealthy clients, thus allowing everyone to invest in the safe haven that is gold and promptly recover from the adverse economic situation.

Naturally, we cannot discuss the current conditions without acknowledging the volatile nature of the gold over the past few weeks. As the financial market meltdown unfolded, a tsunami of margin calls and liquidity squeezes in all other asset classes ultimately led to a correction in the price of the precious metal. This triggered some doubt among investors on gold’s status as a safe haven. However, these doubts quickly evaporated as gold fully recovered and even hit an all-time high after the unlimited QE announced in the US.

In 2008, gold was also dumped as leveraged funds turned to well-performing assets they could easily convert into cash. The asset bottomed in October 2008 only to fully recover the next month and achieve all-time highs before the S&P 500 reached its lowest readings. In today’s context, gold is once again likely to outperform both the equity markets and other precious metals with a stronger link to industrial demand due to the falling production worldwide. Moreover, a few high CPI prints should further catapult gold’s price.

This considered alongside the aggressive behavior of central banks and the slowdown in production signifies that now may be the worst moment to liquidate your gold holdings. Such a predicament can be frustrating to gold owners who see the current market lows as excellent investment opportunities. Fortunately, Nexo’s PAXG Instant Crypto Credit Lines are not merely a tool to access gold as a safe haven, but can also be used to leverage its value and invest in what might be a better risk/return opportunity at the moment.

In summary, Nexo has taken great care in creating the best gold-backed credit line service in the blockchain space starting from working with a high-quality digital gold token to making sure our service is inclusive and accessible. We are delighted to be bringing you a product capable of catering equally to those using gold as a safe haven in the current market as well as to investors who wish to use the value of their existing assets.

We look forward to seeing what you will achieve with our PAXG-backed Instant Crypto Credit Lines.

About Nexo

Nexo is the world’s leading regulated digital assets institution. The company’s mission from day 1 is to maximize the value of digital assets by offering tax-efficient ‘Instant Crypto Credit Lines’, high-yield ‘Earn Interest’ products and ‘Send & Pay’ capabilities for their clients, while ensuring the $100 million custodial insurance and military-grade security of the Nexo platform. Since raising $52.5 million in 2018, Nexo has processed $1.5+ billion in 40+ fiat currencies for 700,000+ users across 200 jurisdictions.

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About Paxos

Paxos is a New York-regulated financial institution on a mission to create a global, frictionless economy. By building infrastructure to enable the movement between physical and digital assets, Paxos is creating a future where all assets — from money to commodities to securities — are digitized and can move instantaneously 24/7.

Today, as the first regulated Trust company for digital assets, Paxos technology makes it possible to tokenize, custody, trade and settle assets. Paxos products include: Post-Trade Confirmation Service, which has been used to confirm over $1.5 trillion commodities and FX trades; Paxos Standard (PAX), the world’s most liquid regulated stablecoin and more. With offices in New York, London and Singapore, Paxos takes a global view of modernizing the financial system.

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About Paxos: [email protected]