Nexo Returns to the U.S. Two Years After Regulatory Friction Forced Its Exit

Crypto lender Nexo is returning to the U.S. two years after friction with regulators forced its exit, the company announced Sunday at an event with Donald Trump Jr.

"America is back and so is Nexo," Nexo Co-founder Antoni Trenchev credited what he described as a more favorable environment for innovation under the Trump presidency.

"Thanks to the vision and leadership of President Donald J. Trump, his administration, and his family, the United States is once again a place where innovation is championed, not stifled. A place where pioneers are celebrated," Trenchev said, according to a press release.

Now managing $11 billion in assets, Nexo will offer its full suite of services to U.S. retail and institutional clients, including high-yield savings products, asset-backed credit lines, and advanced trading solutions.

"We are thrilled to be returning to the U.S. market with an even stronger offering and a deeper commitment to serving both retail and institutional clients," said Nexo's Chief Strategy Officer, Mayank Jain.

"We believe that our unique combination of cutting-edge technology, deep liquidity and efficient operations will enable us to provide unmatched value to clients in this dynamic and evolving landscape."

Nexo pulled out of the U.S. in December 2022 after what it called a "dead end" in negotiations with state and federal regulators over its Earn Interest Product, as well as the market turmoil following the collapse of crypto exchange FTX and a wider crackdown on crypto lenders, CoinDesk reported at the time.

The company said then that it could no longer operate in an "impossible environment" following multiple enforcement actions, including from California and New York.

At the time, Nexo was advertising interest rates of up to 12% on crypto deposits, which several U.S. state regulators said went beyond the rates and services that would classify the firm as a money transmitter, rendering it capable of operating without the required licenses.

Nexo said in July that it was planning a return to the U.S. with a streamlined product offering focused on lending and trading, in a move that signaled the company was adapting to the evolving regulatory landscape. It had applied for licenses in several U.S. states for money transmission and lending services.

The company also said it was shutting down its prepaid card product and planned to discontinue its Earn Interest Product in December 2022. It was unclear whether the company planned to offer any savings products to U.S. clients.