Nexo launches a no-deposit wallet

It’s been a chaotic week in the cryptocurrency space, with the bankruptcy of yet another centralized company, this time FTX.

Against this backdrop, the issue of asset custody has come to the forefront. Yesterday I wrote an article discussing how funds were exiting the exchanges as a result, as investors panicked and rushed to pull out.

So it’s interesting in this climate that Nexo, a cryptocurrency lending platform, has launched a non-depository smart wallet. Currently in its pre-launch phase, the product. is a stand-alone option for sending, receiving, storing, and exchanging digital assets, and works in. five strings : Ethereum, Polygon, Binance Smart Chain, Fantom and Avalanche-C.

We interviewed Product Owner Elitsa Taskova to get answers about the announcement.

CoinJournal (CJ): The Cryptocurrency escrow is obviously a hot topic following recent developments in the industry. Do you think this may encourage the adoption of this non-proprietary wallet?

Elitsa Taskova (ET): Of course, definitely. Of course, Nexo Wallet has been in development since the beginning of the year. At Nexo, we wanted to make sure that customers could choose the level of centralization and decentralization they wanted to have when managing their funds.

We aimed for the stars and wanted to create Nexo 360º, a complete offering that contains everything a person might need to manage their money. Secure, easy-to-use, deposit-free access to DeFi is part of this package, as is the ability to manage your own digital identity without the need for an intermediary.

CJ: It’s interesting that this wallet is launched to be compatible with multiple blockchains. How difficult was it to develop it compared to, say, launching it only on Ethereum?

ET: We will start by supporting a few EVM-compatible chains, which reduces some initial complexity, but we also plan to support other chains with future product releases, including Bitcoin. In addition, we are currently evaluating whether offering a multi-chain bridge is something we want to exploit to meet users’ needs when jumping from one chain to another.

CJ: At the same time, Nexo is a centralized company. Many of its competitors have gone out of business in the last year. While this has nothing to do with Nexo, do you fear that capital will leave this space altogether, and that Nexo – like many crypto companies – will suffer a blow to the overall reputation of the cryptocurrency industry?

ET: We believe that capital is not what makes this industry valuable and interesting: it is the potential of innovation and blockchain to solve inefficiencies in various industries, including and primarily in finance, that brings value to the world. The space has received many reminders throughout the year, and although we recovered, we still need to improve, do more and integrate this innovation into our daily lives.

Indeed, the high levels of fear in the space are causing many users to reduce their cryptocurrency investments, but as always, once volatility stabilizes, they will return. Just as they did during past turbulence, for example, the initial panic related to the COVID pandemic in the early 2020s. In the meantime, we will continue to build the necessary infrastructure for them.

CJ: It is not Isn’t it frustrating to see over-indebted and mismanaged companies inflict so much damage to space, while trying to build and innovate?

ET: It’s frustrating, but it hasn’t affected our eagerness to keep building. On the contrary, it has driven our work for sustainable and compliant practices and products. It has eroded confidence in cryptocurrencies and cast a serious shadow over the lending and financial management sectors within the digital asset space.

My colleagues and I naturally sympathize with the many retail users affected by the recent news in this area. But, at the same time, Nexo’s core business practices, risk management and sustainable model have proven once again that they can withstand this turbulence.

CJ: With the economy in general and the cryptocurrency space struggling, is it difficult to launch new products in such a market?

ET: At times like this you have to stay focused and keep building, otherwise you run the risk of obscuring your long-term vision with short-term stressors. And that’s an unhealthy way to build something sustainable.

While participation in the cryptocurrency space may be hampered during severe market downturns, this hardly eliminates the need and viability of a product like Nexo Wallet. In other words, we are never afraid to face temporarily slower adoption when we create something that will survive the current market cycle and bring immense value to end users.