Crypto Lender Nexo Makes Strategic Investment in SEC-Licensed Broker-Dealer

Cryptocurrency lender Nexo said it made a strategic investment in U.S.-regulated broker-dealer Texture Capital without specifying how much money is involved.

The firm will be hoping to realise its previously stated aim of escaping regulatory scrutiny as it seeks to expand in the U.S.Nexo declined to say how much it invested in Texture Capital.Nexo is aiming to escape the fate of fellow crypto lenders BlockFi and Celsius, whose products were deemed to be unregistered securities by numerous regulatory bodies.Co-founder Antoni Trenchev detailed in September how Nexo’s plan was to acquire a broker-dealer licensed by the U.S. Securities and Exchange Commission (SEC) to use as a conduit for “modified versions” of its crypto lending products.Texture Capital is SEC licensed for issuance and trading of digital asset securities as well as being registered in all 50 U.S. states, Nexo said Tuesday. It is also a member of the Financial Industry Regulatory Authority (FINRA).Nexo’s investment in Texture Capital forms part of the broker-dealer’s seed funding round.

Read more: Celsius CEO Eager to ‘Educate’ Securities Regulators in Brewing Legal Fight

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