Nexo, the leading regulated institution for digital assets, has completed a strategic investment in Yield Inc, a company leading efforts to build the Yield Protocol – an Ethereum protocol that enables fixed-rate borrowing and lending by fostering the nascent DeFi bond market – as part of the company’s $10-million Series A funding round. Nexo aims to not only provide necessary funding but also to help Yield’s efforts to build DeFi native versions of traditional finance products.
Nexo’s investment represents another important milestone on its strategic agenda. As the largest, retail-oriented lender in the digital asset space, Nexo pursues optimal operating and investment returns, but of equal importance to the company is the responsibility to invest in young and prospective Blockchain projects in order to help shape the ecosystem of tomorrow and influence the future generation of crypto visionaries.
The raised funding will further bolster Yield’s mission to make fixed-rate borrowing and lending a fundamental building block of decentralized finance. Yield recently began sharing details regarding version 2 of Yield Protocol’s core borrowing and lending platform, slated for release later this year. Nexo’s seasoned team of financial professionals and technology experts will be available to support Yield’s growth and development, and both teams will join efforts to contribute new standards of professionalism and institutionalization to the nascent DeFi industry.
“Nexo and Yield could form the perfect symbiosis in the industry’s efforts to transform digital assets into a new asset class. While Nexo is a dominant factor in the traditional crypto-backed CeFi space, new business niches could be unlocked by Yield’s zero-coupon fixed-income instruments, dynamic interest rate determination across maturities, and innovative risk management”
commented Tatiana Metodieva, CFA, Head of Corporate Finance at Nexo, who led the buy-side mandate.
“Nexo brings a unique perspective to Yield’s incredible team of investors and advisors. Nexo understands both traditional crypto-backed CeFi, but also understands what it means to be a DeFi power user. We are thrilled to have their help as we launch version 2 of the Yield Protocol and begin to build a community around fixed-rate, fixed-term borrowing and lending products,''
commented Allan Niemerg, CEO of Yield, Inc.
Nexo is the world’s leading regulated digital assets institution. The company’s mission is to maximize the value and utility of cryptocurrencies by offering tax-efficient Instant Crypto Credit Lines™, a high-yield Earn on Crypto & Fiat suite, an instant Exchange service, and sophisticated trading and OTC capabilities, while providing the top-tier custodial insurance and military-grade security of the Nexo Wallet. Nexo has processed $30+ billion for 1,500,000+ users across more than 200 jurisdictions.
Yield is on a mission to make fixed-rate borrowing and lending a fundamental building block of decentralized finance. Yield was the first to launch fixed-rate, fixed-term borrowing and lending on Ethereum, and has pushed forward the state of the art in on-chain financial products and automated market makers. Founded in 2020, Yield is a global, remote-first team committed to building decentralized protocols that empower users to control their financial future.