Nexo, a provider of crypto-backed of loans has made known that Ripple native token XRP is a new collateral option on their platform.
XRP-backed loans are now available on the Nexo platform, making us the first and only crypto lender to onboard #XRP as collateral.
Get instant access to cash while keeping the upside potential of your XRP! #HODL #Ripple pic.twitter.com/YmYWSvW5Ov
— Nexo (@NexoFinance) October 17, 2018
This enables XRP holders to borrow against their XRP tokens on the Nexo platform instead of selling when they are cash stripped and need a quick monetary injection.
Talking about the advantages of including XRP as a collateral option Nexo says: “This makes HODLing XRP even more straightforward, as it eases selling pressure and provides the most tax-efficient model for managing personal finances.”
Right now, Nexo collateral options are BTC, ETH, NEXO and BNB tokens, which can be used for instant loans up to 25% of the user’s holdings. This new option has appeared in the company after the company has announced that the anticipated dividend program will be live on December 15 and that it will distribute 30% of the platform’s profits for the NEXO token holders.
“In every other crypto investment scenario, you have to risk your cash — this way you can put items you already own to work for you and have them earn XRP while you relax,” says McLeod. “With this integration, you can basically double dip on ownership-as-investment by both unlocking liquidity early and investing some or all of the proceeds back into the crypto markets.”
While the revenue data is not publicly available, Nexo claims that it has processed more than $1 billion in loan transactions to date. Thirty percent of the profits from these transactions will be split equally across the fraction of the 560 million NEXO token supply that is staking on Nexo’s platform.
Rent stuff on Omni and get paid in XRP
Omni is an invention of Thomas MacLeod and Stefan Thomas, the former CTO of Ripple and founder of Coil is a start-up poised to change the concept of ownership of physical goods. Back in January 2018, they raised $25 million in XRP with Ripple, Vivi Nevo, Founders Fund, Karlie Kloss being some of the investors.
Omni started out as a storage service, now available in San Francisco and Portland. You schedule a pick up, its reps come to your place, they photograph the condition of your items, and haul them away to be stored in warehouses where space is cheaper than inside the city at users’ homes. The insane convenience of the service is you can request any of your items to be returned in as little as a few hours, so it’s almost like they never left your place. Most traditional self-storage units aren’t open 24/7 and it’s a big hassle to go pick up your stuff, often requiring a truck.
Omni is essentially Amazon Web Services for physical goods. In other words, Omni acts as the keeper of an on-demand personal storage platform build on a shared economy model.
The new XRP integration means XRP users can now cash out their rental earnings straight into their XRP wallets.
Love them or hate them, Ripple and the XRP token are seeing a whole ecosystem being developed around the digital asset and as we already wrote here – that is in the end a net positive for the crypto industry overall.