Nexo Updates Stablecoin Services for EEA Users
Nexo has revealed changes to its stablecoin offerings for customers within the European Economic Area (EEA), in accordance with the latest European Union regulations. This update will impact various activities related to trading, savings, and lending involving stablecoins such as USDT, DAI, USDP, TUSD, and PAXG. The implementation of these new rules will occur in two phases, with the first phase commencing on March 10, 2025, followed by the second phase starting on March 31, 2025. Let’s delve into the details regarding what these modifications entail for Nexo users.
Enhanced Stablecoin Conversion Features
Beginning March 10, 2025, Nexo users will have the ability to swap USDT, USDP, DAI, and TUSD for USDC at the prevailing market rate without incurring any extra fees. This feature will be accessible through various trading pairs on the Nexo Exchange platform, including USDT/USDC, USDP/USDC, DAI/USDC, and TUSD/USDC. The aim of this transition is to encourage users to migrate to USDC, which will still provide avenues for earning interest. However, it’s important to note that these conversions will not qualify for cashback in cryptocurrency. After March 10, 2025, USDT, DAI, USDP, TUSD, and PAXG will no longer accept new deposits in Fixed-term Savings or automatic renewals. Existing fixed deposits in these currencies will continue to accrue interest until their maturity date, and users will have the option to switch to a different currency to maintain returns after their terms expire.
Changes to Dual Investment Strategy and User Options
Nexo will also halt the initiation of new Dual Investment strategies involving USDT within the EEA. However, any current positions will remain active until they naturally conclude. Users are encouraged to consider USDC for future investment opportunities. Despite these updates, EEA users will retain the ability to purchase, hold, and deposit the specified stablecoins, utilize them for loan repayments, and make payments through the Nexo Card in debit mode.
Trading Restrictions Starting March 31, 2025
As of March 31, 2025, trading for the aforementioned stablecoins will transition to a sell-only format. Users will be permitted to convert these stablecoins into other cryptocurrencies, but they will no longer be able to purchase them on the platform. The conversion of USDT, USDP, DAI, and TUSD to USDC will continue to be available at the market rate with zero fees. Additionally, Nexo plans to introduce multi-asset collateral for Futures trading, enabling users to utilize both USDT and USDC as collateral within their Futures wallets. Starting from March 31, 2025, the following features will be suspended: all recurring purchases (including those made using available balances or payment cards), target price swaps for the affected stablecoins, and automatic purchases of stablecoins using euros (EURx) or other cryptocurrencies. Furthermore, Nexo will cease to provide new loans in USDT, while lending functions for other stablecoins will remain unaffected.
Flexible Savings Adjustments
From March 31, 2025, USDT, USDP, TUSD, DAI, and PAXG will no longer be available in the Flexible Savings program. The final daily interest payment for these stablecoins will be made on that date. Customers with fixed-term deposits in these currencies will continue to receive their interest until the contracts naturally mature. Despite these trading, lending, and savings limitations, users will still be able to deposit and withdraw the affected stablecoins without any restrictions.
Implications and Objectives for Nexo Users
The upcoming changes signify Nexo’s adaptation to the evolving landscape of the cryptocurrency sector and its commitment to aligning with European stablecoin regulations. The company strives to provide a seamless and secure experience for its users while enabling them to manage and hold their digital assets effectively. Nexo asserts that these adjustments are a critical move towards enhanced regulatory compliance. Users are encouraged to prepare for these changes and assess the available options for currency conversion to optimize their investment portfolios. The company will continue to keep a close eye on regulatory developments and will promptly notify its users of any further changes.
