Nexo rolls out Zero-interest Credit for 0% APR, no-liquidation risk BTC and ETH loans

The Swiss-headquartered digital assets wealth platform Nexo is launching a new borrowing product that allows crypto holders to access liquidity at 0% APR, looking to attract some of the demand for more crypto-backed credit structures.

According to a press statement shared with Cryptopolitan on Tuesday, the launch of Zero-interest Credit, known as ZiC, will be combined with the existing Nexo Credit Line to become its main borrowing service. 

ZiC will enable Bitcoin and Ethereum holders to borrow funds with a fixed term and no interest charges, and remove the risk of forced liquidation before the loan matures. 

The $11 billion asset management firm said that crypto-collateralized lending is on the rise. According to industry data, crypto-backed loans hit $73.59 billion in the third quarter of 2025. This was a 38.5% rise from the second quarter.

According to its loan business team, ZiC will serve clients who want access to capital without selling their crypto holdings or exposing themselves to liquidations when market prices fluctuate.

Nexo’s zero APR loans change crypto lending gears

Speaking about ZiC, Chief Product Officer Elitsa Taskova explained that the new products will use a borrowing model that is much different from the current variable, interest-based crypto lending. 

Most crypto credit platforms like Aave and Coinbase track loan-to-value ratios, reacting to price swings. Lenders’ deposits are pooled, and borrowers receive loans that are overcollateralized because interest rates depend on supply and demand, policies, and loan duration.

But according to Taskova, Nexo’s new product will lend tokens to borrowers who can enter a predefined arrangement for the duration of the loan term.

ZiC will see each position include a built-in Minimum Repayment Price, where the loan cannot be liquidated before maturity, regardless of a market price change. A Maximum Repayment Price also helps borrowers cap their repayment exposure and lock in gains if prices move favorably.

According to Nexo, this gives clients full visibility into their repayment obligations from the outset and at maturity, when borrowers can settle the loan using stablecoins or their pledged collateral in tandem with where market prices fall in the predefined range.

The company also has a ZiC Renewal option, which allows clients to arrange for time extensions with updated terms, without closing and reopening the loan. This could appeal to long-term crypto holders who prefer not to sell, those managing the timing of taxable events, traders pursuing short-term opportunities, and businesses using virtual currencies to finance operations.

“Borrowers today want liquidity that is cost-efficient, clear, and free from the uncertainty of liquidation risk,” said Nexo CPO Taskova. “Zero-interest Credit gives them exactly that, a predefined borrowing structure they can rely on from start to finish.”

Nexo to expand from lending business into Web3 

Earlier this week, the Swiss-based financial lender established a $150 million in-house Web3 investment fund, according to people familiar with the matter. The fund is managed through Nexo Ventures and is focused on backing projects in blockchain-based gaming, decentralized finance, and non-fungible tokens.

Company head of communications Troy Gravitt told reporters that the venture unit’s role within the company “went from a side hustle of the corporate finance team” to a “full-on strategic part of the business by January.”

Nexo Ventures is led by Tatiana Metodieva, who is in charge of corporate finance and investments for the firm. She said the fund is meant to support Web3 adoption and complements Nexo’s existing product lineup.

The venture arm has already deployed capital into several crypto and blockchain companies like 1inch, BCB Group, BlockFills, Bware Labs, Interlay, Mizar, Qredo, Rain, Texture Capital, The TIE, and Yield Protocol.

“Also, our investment value proposition differs from most traditional investment funds,” Metodieva continued, “We’re native to and have a deep understanding of the digital asset industry and technology. We prioritize strategic investments and aim to integrate innovative solutions into Nexo’s product ecosystem and across our global market footprint.“

Sources familiar with the matter said near-term deal flow for the fund will “easily double the number and size of its recent investments.”

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