Nexo Unleashes Zero-Interest Credit: 0% APR, No-Liquidation Risk Loans for BTC and ETH

Nexo just rewrote the crypto lending rulebook. The platform slashed interest rates to zero and eliminated liquidation risk for its flagship Bitcoin and Ethereum credit lines.

The Zero-Cost Leverage Play

Forget everything you knew about crypto-backed loans. Nexo bypasses the traditional model—no more watching loan-to-value ratios like a hawk or sweating margin calls. Borrow against your BTC and ETH stash without the ticking clock of accruing interest or the threat of an automatic sell-off.

How It Cuts Through the Noise

The mechanism is simple: qualify for a 0% APR credit line using your digital assets as collateral. Access liquidity instantly without selling your long-term holdings. It turns dormant crypto into a working financial tool without the usual strings—or costs—attached.

The Fine Print They're Shouting About

This isn't a loss-leader teaser rate. The 0% APR is the headline for their core credit product, with the no-liquidation guarantee acting as the ultimate safety net. It effectively lets investors have their cake and eat it too—hodl through volatility while tapping equity.

One cynical finance veteran might call it a masterclass in customer acquisition: give away the razor to sell the blades later. But for the crypto-native user, it's a powerful new primitive—turning the fear of a forced sale into a relic of a more primitive financial age.

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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