Cryptocurrency News

Crypto Interest Accounting Giant DeFi Talks Institutional Adoption

While decentralized finance has stole the show over the past year with a slew of headlines – the closely watched Total Value Lock (TVL) figure is rising by nearly 800%, from $20 billion in early 2021 Centralized crypto financial services have also enjoyed explosive growth – swelled to $157 billion at May’s peak.

According to Nexo’s CFA and co-founder Kalin Metodiev, the crypto savings account company has grown four-fold to $15 billion in AUM, expanded to 1.7 million customers, and has assets like asset swap functionality built into the platform coming down the pipe. There are new features.

Nexo and Cointelegraph briefly crossed paths in Miami only through a short conversation at the Nexo-sponsored Bitcoin Art Gallery – one of the highlights of the conference hall. However, we caught up with Metodiev for a written interview to talk key metrics ascent soon after the madness ended, the risks to DeFi Nexo’s model, and the path forward for institutional adoption.

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When it comes to the rise of DeFi, Metodiev sees a clear limit in terms of the heights it can reach due to some of its original, permissionless features.

“We are curious about the opportunities the DeFi space can provide and find merit in the notions of automation and decentralization,” he added. “However, this is a space that needs to align with institutional policies and standards in order to survive and thrive at large in the long run. Nexo operates in accordance with formal AML/KYC guidance and compliance protocols, which are currently in place. I am not adopted by DeFi Spaces.”