Nexo, a crypto loans provider has let it be known that they are now accepting XRP as collateral for users to get access to loans. Nexo announced this on their official blog last week. The decision to add XRP as a collateral option was arrived at after a community poll by Nexo showed that users popularly asked for XRP to be added. The third most valued cryptocurrency, XRP has been growing by the day and the addition to add it as a collateral option for Nexus customers will only serve to boost its popularity. XRP which had briefly risen to second above ether gained 3 percent on its market valuation according to CCN report today.
XRP is set to grow further because its use case as a disruptor when it comes to international payments has endeared itself to investors and users. XRP is fast gaining popularity since it is being seen for its long-term potential which could see its current 18 billion valuation rise even higher. The new move by Nexo means that XRP holders can now borrow against their XRP holdings if they need some quick cash. Borrowing against your XRP holdings is much better than selling them since it gives you a chance to hold XRP for investment purposes while also easing selling pressure against the cryptocurrency.
While announcing this move, Nexo described this as “an incredibly powerful utility feature” for XRP. Nexo will go down in history books as the first ever lender to accept XRP as security for handing out loans. Antoni Trenchev, the Nexo loans managing partner revealed that Nexo had plans of raising the LTV (loans to value) ratio for XRP from 30 percent to 40 percent. This is in simple terms means that if a user were to deposit 10,000worth of XRP they would immediately have access to a 4000 credit line, which is quite impressive and useful.
Users have received the move by Nexo quite positively with over 120,000 people joining the platform in under 6 months. Nexo has already handed around loans worth millions of dollars in over 40 different currencies in over 200 countries. The company has reportedly launched other community polls, the outcomes of which will determine whether the company will add litecoin and Bitcoin cash on the list of options for crypto collateral. While addressing this, Antoni Trenchev said, “BCH and Litecoin are scheduled for this November and we are on track. On top of that, we are looking to add another 6-7 collateral options in 2018. Being able to borrow against their coin is a great additional utility feature and is hugely appreciated by the respective communities.” The crypto community will definitely smile on Nexo if their move boosts the popularity of cryptos globally
