Singapore — July 1, 2019 — Terra, the project building the next-generation payment system on the blockchain, announces today a strategic partnership with Nexo, the leading cryptocurrency lending platform, to offer new decentralized financial products and expand the crypto lending and savings market across the fast-growing Asian markets.
The collaboration between Terra and Nexo focuses on two new product offerings:
- Adding Terra as the latest collateral option for Nexo’s instant credit lines: Eliminating the need for cumbersome credit checks, Nexo will offer users the ability to obtain an instant loan in fiat currency or cryptocurrency by placing their Terra in a Nexo account.
- Offering a high-yield savings program with Terra: Terra holders will enjoy high-interest rates of up to 8% on their holdings via Nexo, which is much higher than what traditional institutions offer. Moreover, Terra will top Nexo’s 8% interest rate with additional returns, funded by Terra’s seigniorage model, which would allow Terra holders to enjoy double-digit yearly returns on Nexo.
There is a growing need in Asia for a more efficient and convenient lending service. In a region where more than 1 billion people are estimated to have no access to formal financial services, including bank loans, Nexo has already solved many of the industry’s biggest issues by offering innovative services such as its signature instant credit lines, where interest is paid out on a daily basis. Through this partnership, Terra and Nexo will now be able to provide even more solutions to counteract the lack of quality financing options in the region.
The ability to borrow against assets instead of selling them adds an incredibly powerful utility feature to Terra. Moreover, we are excited to soon offer Terra as part of Nexo’s high-yield savings program, in which we plan to utilize seigniorage to fund even higher interest rates,” said Daniel Shin, Co-Founder of Terra. “We’re thrilled to have found a reliable and experienced partner like Nexo, who is a strong driving force in the crypto industry and has opened up real-world applications for digital assets, gaining millions of global users in the process.”
We are excited to add Terra to the growing list of available stablecoins offered on our platform,” said Antoni Trenchev, Managing Director of Nexo. “With its unique seigniorage model and its impressive e-commerce alliance, Terra is set to become the most widely used and traded stablecoin in Asia and beyond. This makes it the most logical step for us to offer Terra to our users via our instant crypto credit lines. Terra is already backed by some of the biggest names in Southeast Asia, and we can’t wait to see how far we can take the spread of crypto across Asia with Terra’s help.”
Terra and Nexo are natural partners since both companies have the shared goal of designing decentralized financial services with real use cases for the mainstream audience.
Nexo is the leading crypto lender, which has already processed $500,000,000+ for its rapidly growing user base that exceeds 250,000, who get instant access to fiat and stablecoins via Nexo’s Crypto Credit Lines against their digital holdings in BTC, ETH, XRP, LTC, BNB, and NEXO.
Terra aims to become the first widely used cryptocurrency by pushing adoption through its formidable e-commerce alliance across Asia. To date, the Terra Alliance has a collective annual transaction volume of $25 billion and 45 million users, including Asia-Pacific giants such as TMON, Baemin, Carousell, Qoo10, and Tiki. After launching its mainnet in April, Terra has announced that a blockchain-powered mobile payment partner called CHAI went live on TMON, one of Korea’s largest e-commerce companies. CHAI has amassed over 100,000 unique users just within two weeks. Terra has also recently announced investments from LuneX and Ulysses Capital to help the expansion of Terra and its e-commerce alliance across Asia.