Nexo has unveiled a new lending product that allows holders of Bitcoin (BTC) and Ethereum (ETH) to secure loans without incurring interest. This initiative, referred to as Zero-interest Credit, enables users to borrow against their cryptocurrency assets through fixed-term agreements.
According to the company”s announcement, this product stipulates repayment terms in advance. Loans are due at maturity and can be repaid in stablecoins or through collateral, depending on the prevailing market conditions. This offering marks an expansion of Nexo”s structured lending model, which was previously accessible only via private and over-the-counter (OTC) channels. During 2025, Nexo reportedly facilitated over $140 million in borrowing through these channels.
Borrowers have the flexibility to select their desired loan size and duration at the outset. The terms are designed to prevent liquidation prior to the loan”s maturity and clearly outline the repayment range. At the conclusion of the loan term, borrowers can choose to settle their loans using stablecoins or collateral, with the added option to renew under new terms.
Founded in 2018, Nexo provides a variety of crypto financial services, including crypto-backed loans, trading, and savings solutions to customers across 150 jurisdictions. Earlier this year, the company announced its plans to reenter the U.S. market in April 2025 after having withdrawn in late 2022 and settling a $45 million case with the U.S. Securities and Exchange Commission (SEC) in early 2023.
The landscape of crypto lending has undergone significant changes since 2022, a period marked by the failures of several firms like Celsius and BlockFi, which contributed to market contagion and intensified the fallout from the FTX collapse. In 2025, centralized lenders such as Nexo, Ledn, and Coinbase have expanded their lending products while adopting more conservative and fully collateralized frameworks. Concurrently, decentralized finance (DeFi) protocols have also witnessed impressive growth.
Data from DefiLlama indicates that the total value locked (TVL) in DeFi lending products surged from approximately $48.15 billion on January 1, 2025, to a peak of $91.98 billion by October 7, 2025. Although the market experienced a downturn following the October 10 liquidation event, activity has since stabilized, with the current TVL hovering around $66 billion.
Leading the DeFi lending sector is Aave, boasting over $22 billion in outstanding loans supported by more than $55 billion in deposited assets, as per DefiLlama. Morpho follows in second place, managing around $3.6 billion in outstanding loans backed by about $10 billion in supplied liquidity.
