Fiat and crypto lending platform, Nexo has passed an audit of its custodial assets and liabilities. The audit was conducted by a top accounting firm, Armanino. According to the published results, Nexo’s assets exceed their customer liabilities.
How It Started
Nexo’s Finance team engaged the services of US firm, Armanino LLP in June. The accounting firm was brought in to provide an audit of the firm’s custodial assets and provide a real-time attestation of the crypto lender’s custodial assets and liabilities. Prior to the engagement, Armanino had Kraken, Uber, and DoorDash in its clientele list.
By doing this, Nexo becomes the first crypto lender to make its accounts public, and it did so with an independent auditor. In doing so, the company successfully raised the bar for transparency and customer trust, setting an example that others should emulate.
Any interested member of the public can access the data about Nexo’s assets and liabilities. The reports can be viewed and downloaded as reports. Once a customer decides on an asset from Nexo’s Borrow and Earn Crypto Interest, they can verify the state of the custodial asset on the daily chart
Speaking about the Armanino audit, Antoni Trenchev, Co-founder and Managing Partner of Nexo stated,
“In the long run, the companies that provide their customers the necessary transparency, security and peace of mind, will win.”
Trenchev believes that it is wise to invest in transparency and trust given the spike in the crypto ecosystem. He asserts that widespread adoption has increased by 880% in 2021 alone. He went ahead to, “challenge other lenders and crypto leaders” to do likewise.
The implication of Custodial Assets Audit
The implication of this finding by Armanino is that holdings on the Nexo platform are secured. Invariably, this means that Nexo can pay any liability it owes at any time. Also, it means that you can rest assured that custodial assets on the platform are properly managed, accounted for, and always available.
According to a blog post on the company website, it is necessary for Fintech businesses to prove reserves. This, the company believes will help retain customer trust.
It said, “we believe that with self-regulation as a working solution and active industry engagement with regulators, the digital assets industry will thrive.”
Armano’s audit is the latest in a series of actions that form the #NexoTransparency campaign. The crypto lending company also undergoes a financial audit under PCAOB audit standards. The crypto lender hopes, by these actions, to present solid proof that it is well equipped to handle any challenge. It also hopes to attract clients that want secure and regulation-compliant businesses.