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

The firm’s investment into Texture Capital may be aimed at limiting regulatory scrutiny when it seeks to expand in the U.S.

AccessTimeIconNov 9, 2021 at 3:42 p.m. UTC
Updated Nov 9, 2021 at 4:11 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

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 realize 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 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, a self-regulatory organization.
  • Nexo’s investment in Texture Capital forms part of the broker-dealer’s seed funding round.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.