Online lending firm Nexo has added Ripple (XRP) to the list of cryptocurrencies allowed as collateral for borrowing instant crypto-backed loans.
Ripple (XRP) cryptocurrency holders can now use the token to borrow cash after an online lending firm started to support the crypto.
Instant crypto-backed loan provider Nexo tweeted on October 18 that it has begun accepting XRP as collateral for loans. Nexo allows customers to borrow fiat currencies after they deposit cryptos like XRP and the platform’s own NEXO Token (NEXO), to name a few.
XRP-backed loans are now available on the Nexo platform, making us the first and only crypto lender to onboard #XRP as collateral.
Get instant access to cash while keeping the upside potential of your XRP! #HODL #Ripple pic.twitter.com/YmYWSvW5Ov
— Nexo (@NexoFinance) October 17, 2018
Clients can receive an instant loan amount corresponding to a percentage of the collateral, which ranges from 20 to 50 percent.
As of October 23, XRP and NEXO is trading against the US dollar at US$0.45558922 and US$0.13154745, respectively.
To start borrowing from Nexo, owners of XRP, NEXO, and other supported cryptos have to click only a few buttons for a couple of minutes. Here are three steps how to avail Nexo’s services.
- Create a Nexo Account
Customers have to create a free account first before acquiring Nexo’s lending service. After their first login, they have to verify their accounts in compliance with know-your-customer/anti-money laundering (KYC/AML) standards. In addition, huge withdrawals up to US$2 million require clients to submit documents for verification.
- Deposit Crypto to Nexo Wallet
The next step is for customers to deposit their chosen crypto as collateral to a wallet. Apart from the aforementioned tokens, Nexo also accepts Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and 16 more cryptos. Nexo said that BitGo, a custodian approved by the Securities and Exchange Commission (SEC), secures the customers’ crypto funds.
- Get Instant Loan
Clients can borrow a minimum amount of US$1,000 and a maximum of US$2 million, in proportion with the value of the collateral. The annual prime rate is at 16 percent when paying in either crypto or fiat, while the percentage drops to 8 percent when paying in NEXO.
At the moment, Nexo’s crypto-backed lending is available in more than 200 jurisdictions, with support for more than 40 currencies.