{"id":139668,"date":"2021-09-24T11:09:43","date_gmt":"2021-09-24T11:09:43","guid":{"rendered":"https:\/\/precoinnews.com\/?p=139668"},"modified":"2021-09-24T11:09:43","modified_gmt":"2021-09-24T11:09:43","slug":"nexo-finance-liabilities-are-fully-backed-armanino-llp-report","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/altcoins\/nexo-finance-liabilities-are-fully-backed-armanino-llp-report\/","title":{"rendered":"Nexo Finance Liabilities are Fully-Backed: Armanino LLP Report"},"content":{"rendered":"
The U.S.-based CPA firm–which has audited bluechip companies like Uber and Crypto exchange, Kraken,– Armanino LLP, has confirmed that NEXO Capital’s assets far exceed customer\u2019s liabilities.<\/strong><\/p>\n Based on an independent <\/span>report<\/span> on September 23, Nexo Capital’s Customer Liabilities stood at $9,466,378,280.\u00a0<\/span><\/p>\n Data used in drawing this conclusion was reliably pulled from the platform’s API.\u00a0<\/span><\/p>\n Upon Nexo’s approval of agreed-upon procedures and attestation standards, the firm’s calculation was based on digital asset’s spot rates and applicable FX rates.<\/span><\/p>\n The report states that Armanino used applicable attestation standards set out by the American Institute of Certified Public Accountants.\u00a0<\/span><\/p>\n During the review period, Nexo’s assets ranged from fiat currencies\u2014in various denominations, digital assets\u2014some of which were self-custodied, others under the control of third parties, derivatives, and lending positions, and their outstanding customer loan book.<\/span><\/p>\n Armanino obtained a list of Nexo’s custody providers, counterparty sources, and in-scope DeFi solutions as sources. At the same time, the firm extracted all relevant wallet addresses supplied by Nexo.\u00a0<\/span><\/p>\n For assets deployed in DeFi, Armanino calculated the difference between the deposits and loans, expressing the balance in USD. Meanwhile, Nexo’s assets were calculated based on a relevant list of individual digital and fiat assets and converted to USD equivalent.\u00a0<\/span><\/p>\n Nexo Finance is a regulated institution for digital assets, credited as a pioneer of the first instant crypto credit lines. Besides, it is behind the high-yield crypto interest product–which differentiated it from competing protocols.\u00a0<\/span><\/p>\n The attestation report of Nexo’s assets and liabilities is timely when Nexo aims to make its platform even more transparent, breeding the much-needed customer confidence in what has been described as an under-regulated “wild west” of finance.\u00a0<\/span><\/p>\n Besides the independent attestation report submitted by the CPA firm, Nexo does submit annual financial statement audits as a regulated institution.\u00a0<\/span><\/p>\n The platform claims that its products are far superior and can withstand periods of extreme volatility like it was in the first half of this week.\u00a0<\/span><\/p>\n According to Antoni Trenchev, the co-founder of Nexo Finance, their clients can swap between collaterals, settling on a better performing asset to keep their LTV ratio healthy.<\/span><\/p>\n<\/span>Nexo Finance Liabilities Are Fully-Backed<\/b><\/span><\/h2>\n
<\/span>Armanino LLP Report Breeds Confidence<\/b><\/span><\/h2>\n
<\/span>Nexo Finance Products Can Cushion Against Extreme Volatility<\/b><\/span><\/h2>\n
<\/span>Related posts:<\/span><\/h3>\n