Nexo Crypto Lender Acquired Stake In SEC-Compliant Texture Capital

The Nexo crypto lender acquired a stake in the SEC-compliant Texture Capital broker-dealer as we are reading more in our latest cryptocurrency news.

The Nexo crypto lender platform announced a strategic investment in Texture Capital Holdings Corp, a parent company of the US broker-dealer Texture Capital. The stake in Texture Capital is a part of a seed round for the broker while the company is a member of the Financial industry regulatory authority and is registered as a broker-dealer with the US SEC. The company specializes in the issuance and trading of digital securities using blockchain while the company is incorporated in the state of Delaware and registered in all 50 states.

The regulatory approval is crucial for Nexo as it allows for the lending platform to enjoy an advantage of a broker-dealer licnese and to provide services for US citizens as Nexo explained in an announcement. Today’s announcement came less than a month after the New York Attorney General Letitia James revealed that her office is conducting further investigations into unregistered crypto lending and borrowing platforms.

The NYAG issued two unregistered crypto lending platforms and demanded other platforms as well to hand over information about operations right to the NYAG office. While James didn’t name the companies in question, one of the files was named “Nexo Letter” which suggested that Nexo is one of the entities under investigation. A spokesperson for Nexo noted:

“Nexo is not offering its Earn Product and Exchange in New York, so it makes little sense to be receiving a [cease and desist order] for something we are not offering in NY anyway.”

The other company hit with an order was filed Celsius NEtwork but later Celsius denied receiving a cease-and-desist letter from the NYAG. While the investment in texture is seen as a great one for Nexo to avoid regulatory hurdles in the future, it is hard to say whether it came in response to the NYAG actions. When asked how long the deal is in the works, one spokesperson said that is pleased with how fast and efficient the transaction developed and that the team managed to go through all of the required steps.

NExo didn’t disclose the amount of the investment and said that it had acquired a minority stake in Texture Capital. The company also stressed that it sees the acquisition as a strategic move since the stake in Texture will allow the lender an easier investment route while maintaining the same licensing potential.

Source: https://www.dcforecasts.com/altcoin-news/nexo-crypto-lender-acquired-stake-in-sec-compliant-texture-capital/