Nexo and Chainlink have announced a new partnership to accelerate the adoption of digital assets by increasing trust in the fintech industry.
Nexo is a cryptocurrency provider, while Chainlink is a decentralized network of oracles. Through this collaboration, Chainlink will contribute to the decentralization of lending, OTC and institutional services of Nexo, which in turn is building a suite of prime brokerage products.
Chainlink’s decentralized network of oracles will improve Nexo’s security, enable better custody of user funds, higher volumes of loans, and a more active OTC desk.
For example, in cases where Nexo loans pay interest in a currency other than the currency in which the loan is denominated, Chainlink will provide a reliable and transparent exchange rate for the calculation of interest.
In the meantime, the value of Chainlink’s LINK token has risen significantly in the last few days, reaching its new all-time high of $6.35.
LINK debuted in the markets in September 2017, with a price below $0.2, and during the speculative bubble in late 2017, early 2018, it reached its first all-time high of over $1.2 in January 2018.
After that, it returned to $0.2, and only surpassed $1 again in May 2019, and then peaked again at $3.7 in June of the same year.
It then fell back below $3 until February 2020, peaking again at $4.74 in early March, before the financial markets collapsed.
In mid-March 2020 it fell again below $2 and then rose again to today’s new high of $6.35.
The co-founder and Managing Partner of Nexo, Antoni Trenchev, commented on the news of the partnership saying:
“Nexo’s mission is to bridge the gap between digital and traditional finance and our developing partnership with Chainlink brings us a step closer to achieving this. We are very much on the same page — both in terms of how our respective services currently align, and in terms of our shared vision for a digital, decentralized future of finance. We’re thrilled to have them on board”.
The co-founder of Chainlink, Sergey Nazarov, added:
“We’re excited to bring Chainlink’s secure and reliable oracle solutions to Nexo’s popular lending platform to enable users to independently verify on-chain the interest and collateralization rates they should receive. This allows Nexo to provide additional trust and transparency to their large user base”.