Terra, a startup that is focused on building the next-generation blockchain-based payment systems, has inked a strategic partnership deal with Nexo, a highly reputed crypto lending platform to offer users new decentralized financial products, while also expanding the crypto lending and savings ecosystem in Asia.
The collaboration between the two heavyweights will focus on two innovative product offerings:
Terra will become the latest collateral option for Nexo’s instant credit lines. This will eliminate the need for complex credit checks. Nexo will enable users to obtain instant loans in fiat currency or cryptos by simply placing their Terra in a Nexo account.
The Terra high-yield savings program will enable Terra holders to get up to 8% interest on their crypto assets via Nexo and Terra will further top Nexo’s 8% interest rate with additional returns. The additional returns are funded by Terra’s seigniorage model, which makes it possible for Terra holders to get double-digit yearly returns on Nexo.
At current, there is a huge demand for more efficient and convenient lending services in Asia.
In an area where over 1 billion people are estimated to have limited access to financial services, Nexo has made life easier for the masses by offering innovative services like its signature instant credit lines, where interest is paid to users every day.
With the latest Terra and Nexo alliance, it is expected that the team will now provide more financial solutions to its clients.
Daniel Shin, Co-Founder of Terra noted that:
“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.”
The partnership seems like a forward-thinking maneuver for Terra and Nexo, since both firms have the shared goal of designing decentralized financial services for the mainstream audience.
Nexo has already processed more than $500,000,000 in lending operations for its over 250,000 users base who are given instant access to fiat and stablecoins through its Crypto Credit Lines against their crypto holdings in bitcoin, ether, XRP, litecoin, binance coin and NEXO.
Terra is focused on becoming the first digital asset to hit mainstream adoption through its robust e-commerce alliances across Asia.
To date, the Terra Alliance boasts of an annual transaction volume of $25 billion and 45 million users, including Asia Pacific heavyweights such as TMON, Baemin, Carousell, Q0010, and Tiki.