The past week has been quite dynamic across all markets and asset classes but as usual with great volatility comes great opportunity. At Nexo, we have designed products to help you continue growing your wealth in any market condition and to suit your worldview.
Еarn 8% Interest on Your Cash and Stablecoins
If you subscribe to the motto “cash is king” in crises, you might be looking for the best option to enhance the yield on your hard-earned cash while avoiding exposure to the price fluctuation of the alternative asset classes.
Nexo’s ‘Earn Interest’ product offers just that:
- High-yield savings with a compounding interest rate of up to 8% paid out daily
- Full flexibility: use or withdraw funds at any time
- Available for USD, EUR, GBP and stablecoins (USDT, TUSD, DAI, PAX and USDC) with even more assets coming soon
- #ZeroFees — No fees, no minimum contribution requirements
- $100 million insurance on custodial assets through Lloyd’s of London
- Cold storage in bank-grade Class III vaults through the SOC 2 Type 2 certified crypto custodian BitGo
- All funds are asset-backed by Nexo’s portfolio of 200–500% overcollateralized crypto credit lines
The Global Macro Situation
As the worldwide COVID 19 crisis is unfolding, the economic damages are inevitable: Goldman Sachs and Morgan Stanley are expecting a contraction of 24% and 30% respectively in US gross domestic product during the second quarter of 2020. Ray Dalio, founder of Bridgewater Associates, estimates that the financial losses for US companies from the coronavirus-induced slump could be about $4 trillion.
In an attempt to stop the economic meltdown and prevent a collapse of the legacy financial system, central banks are aggressively injecting liquidity in the economies all over the world. In fact, just a few hours ago the Federal Reserve announced unprecedented quantitative easing, including buying unlimited amounts of bonds in order to keep the borrowing costs low.
The US is not alone in this situation — last week, the European Central Bank announced a €750 billion bond buyback program, Bank of Japan is conducting emergency bond buying, while Australia implemented quantitative easing for the first time.
The result is even more depressed yields on government and corporate bonds, respectively pushing interest rates on traditional banking deposits further down.
Published at Mon, 23 Mar 2020 19:47:06 +0000