Nexo Expands Zero-Interest Credit with XRP Collateral

Nexo has expanded its Zero-interest Credit product to include XRP (XRP) as collateral, allowing holders to access stablecoins without selling their tokens. The service supports XRP alongside Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), with no margin calls or liquidation during the agreed loan term.

The Zero-interest Credit product uses a 30% loan-to-value ratio, with a minimum threshold of 5,000 XRP. Borrowers can receive proceeds in USDT or USDC and choose a fixed duration ranging from five days to 12 months, with individual loans reaching up to $5 million.

Nexo's Zero-interest Credit product operates differently from traditional open-ended crypto loans, as it does not liquidate collateral when its value falls. However, the product does have settlement boundaries, which include a Minimum Repayment Price and Maximum Repayment Price for XRP. If XRP finishes below the minimum level at maturity, collateral is used to settle the credit at that predefined floor.