Nexo, the world’s largest and most trusted lending institution, has launched the option of using PAX Gold (PAXG) token for retail traders.
The move allows all customers to use the ERC-20-based token as a collateral option, after it was just available to institutional clients, the Block website reported.
PAXG represents one troy ounce of London Good Delivery Gold. It allows owning gold as a safe haven asset.
Antoni Trenchev, co-founder of Nexo, said:
“All clients can seamlessly acquire gold and borrow against it.”
“With Nexo and PAXG, you can invest in physical gold, represented by the PAXG token. You can then pledge your tokens as collateral and get 70% of the investment amount as a loan with an annual percentage rate (APR) starting at 5.9% and buy even more gold,” he added.
The PAXG was offered to retail investors because of their growing demand for the token. “Especially in high-volatility times, as in the present, gold is sought after by many of our retail clients,” Trenchev said.
He indicated that dozens of institutional investors use the token. Thus, the total number of PAXG’s institutional and retail users reaches more than 650,000.
Late last year, the firm has purchased PAXG tokens worth $5 million. In addition, it secured $52.5 million through a private token sale in 2018.
NEXO: Interest rates to remain at 8%
With the whole world seeking to be resilient in the current crisis, NEXO has stated, “Despite the market meltdown, Nexo, the Largest and Most Trusted Lending Institution ‘Earn Interest’ rates will remain a stable 8% through these tumultuous times.”
The institution also showed how it can maintain its excellent service despite the current uncertainty in global finance.
Nexo has recently expressed delight for being honored at ADVFN International Financial Awards 2020.
The institution continued to discuss how the global interest rate will be below zero and how it can help investors gain 8 percent of their USD, EUR, GBP and stablecoins.