Front-Running Wall Street with Nexo

Executive Summary

Wall Street enters the blockchain space by moving into compliant dividend and asset-backed tokens

Both crypto and traditional exchanges are competing to accommodate institutional investors by embracing regulatory standards

Upon completion of the ongoing compliance procedure, NEXO Tokens will be among the first to be traded on a regulated exchange

Meanwhile, NEXO Tokens will initially start trading on certain exchanges that have elected to list it in an effort to satisfy the ever-growing demand and to ensure liquidity for existing token holders

In the Forefront of Progress

At Nexo, we aim to remain ahead of the curve in terms of providing the world’s first instant crypto-backed loans in the most efficient and seamless way to our clients. We also focus on the bigger picture with regards to economic, political and regulatory trends to deliver maximum value for our investors and the NEXO Token holders.

The NEXO Tokens are the world’s first asset-backed dividend-paying tokens issued in compliance with securities regulations. This is not the usual stance of blockchain companies and is what sets apart the NEXO Dividend Tokens from any other token. Regulatory compliance further enables Nexo to share 30% of its profits with its token holders through dividends, providing them passive income and essentially paying them to HODL.

(Image is for illustrative purposes only)

Wall Street Meets Crypto

For the first time ever Wall Street is lagging behind, as almost all institutional investors have missed out on the action so far. Now, Wall Street giants are catching up by establishing trading desks in an arms race to get there first, so even former skeptics are becoming proponents of the emerging asset classes.

Even in new domains, smart money is looking for familiar instruments that fit into its existing portfolio-building techniques. So, it is no surprise that Wall Street’s entry into crypto comes through selected investments in compliant dividend-paying and asset-backed tokens, issued by companies with track records, solid business cases and live products, like Nexo (see Why).

Wall Street is looking at familiar and compliant asset-backed dividend-paying assets (image is for illustrative purposes only)

Trading Platforms Adapting

Leading exchanges have been quick to comprehend the inevitable shift towards compliant tokens in order to accommodate the huge influx of institutional players with their vast financial resources and thirst for exposure to crypto assets. This means becoming either a SEC-regulated exchange or brokerage.

The above considerations help bring context to the recent actions of Binance’s CEO Changpeng Zhao to move the exchange to Malta and negotiate a deal with Bermuda so that ‘anybody can list any coin’. Poloniex, recently acquired by Goldman Sachs’ Circle, is working with the SEC to become the first US regulated exchange. Coinbase seeks to become the first broker-dealer to offer SEC-regulated crypto securities. And Nasdaq CEO Adena Friedman has been very blunt about the future — ‘certainly Nasdaq would consider becoming a crypto exchange’. Surely, the second-largest exchange in the world by market capitalization has some insights as to where Wall Street is headed.

Relating All of This to Nexo

The procedure of listing the NEXO Dividend Tokens on a regulated exchange is progressing and still requires compliance-related legal work from both Nexo and the exchange, the extent of which exceeded even our most conservative views as to the duration of the necessary steps. Being one of the first compliant tokens to trade on a regulated exchange takes careful crafting and coordination in order to remain compliant, which is a prerequisite for institutional support on a massive scale and thus the success of Nexo and the corresponding performance of the NEXO Dividend Tokens.

NEXO will be among the first compliant tokens to trade on a regulated exchange (image is for illustrative purposes only)

In addition to listing on an established exchange, Nexo is also exploring emerging projects like tZero and Templum who are directly applying the ATS approach to trading securities, while companies like Polymath are bringing more opportunities with their own securities token standards. Even entire jurisdictions are moving towards establishing business friendly rules for trading blockchain securities.

However, in order to keep our promise to our token holders and in an effort to satisfy the ever-growing demand for NEXO Tokens, the NEXO Dividend Tokens will start trading on certain exchanges that have chosen to list the token.

The Nexo Team views this step as a significant interim milestone on the journey to establishing the NEXO Dividend Tokens as the preferred investment vehicle for both retail and institutional investors in the exciting new world of trading asset-backed dividend-paying tokens freely, just as the innovation of blockchain technology would have it. We are beyond thrilled at the possibilities that are unfolding in the immediate future.

Do check out our earlier blog posts, share them with your friends and let them too be part of the Nexo success story!

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