Shaurya Malwa · 6 hours ago · 2 min read
Crypto lending platform Nexo and popular blockchain oracle network Chainlink are now launching a collaborative effort to help perpetuate the adoption of digital assets.
Through the new collaboration, Chainlink’s oracle system will be integrated into Nexo’s lending and trading operations, helping to improve its security and efficiency.
It will also help Nexo expand their services in a way that can spur greater adoption of the crypto-based financial ecosystem. It will enable the platform to provide increased custody of funds, greater loan volumes, and a more active over-the-counter desk operation.
Nexo Co-founder: Chainlink collaboration to help bridge gap between traditional and digital finance
Chainlink’s decentralized oracle network has been garnering noteworthy utility in recent times.
CryptoSlate reported in late-June that China’s national blockchain project – known as the Blockchain Services Network, or BSN for short – would be integrating Chainlink oracles to increase the efficiency and security of their network.
This was a notable integration and is just one of many that the network has seen.
Nexo, which is the latest company to announce oracle integration, will be utilizing the network to create on-chain audit trails for its lending and borrowing operations.
The Chainlink oracle network will be particularly useful when it comes to making interest payments in a currency different from that which the loan is denominated in.
In a blog post announcing the collaboration, Nexo notes:
“In situations where Nexo loans make interest payments in a separate currency than what the loan is denominated in, Chainlink would provide a reliable and transparent exchange rate for calculating the interest payments.”
The oracles will also help borrowers know precisely when their loans are nearing their liquidation prices.
While speaking about the collaboration from a long-term perspective, Nexo co-founder Antoni Trenchev explained that Chainlink will help them achieve their goal of bridging traditional and digital finance.
“Nexo’s mission is to bridge the gap between digital and traditional finance and our developing collaboration with Chainlink brings us a step closer to achieving this.”
Chainlink co-founder Sergey Nazarov echoed this sentiment, explaining that the oracle network will help users easily verify lending rates as well as collateralization rates.
“We’re excited to bring Chainlink’s secure and reliable oracle solutions to Nexo’s popular lending platform to enable users to independently verify on-chain the interest and collateralization rates they should receive.”
This latest integration comes as the hype surrounding Chainlink continues rising at a rapid pace. Continued news surrounding the network’s growing utility may help fuel its growth.
Get an edge on the cryptoasset market
Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.
Join now for $19/month Explore all benefits