Nexo Taps Bakkt For US Return Three Years After SEC Settlement Over Lending Product

Nexo announced on Monday that it had become the latest crypto firm to return to the U.S. following what critics called a regulatory assault under the SEC’s previous leadership.

In a press release, the company that once positioned itself as a crypto lender said that it was “relaunching its flagship Yield, Exchange Loyalty, and Credit Lines” in the U.S., following a $45 million settlement with the SEC in 2023, then helmed by former Chair Gary Gensler.

Using digital asset trading infrastructure provided by Bakkt, a digital asset platform founded by the New York Stock Exchange’s parent company ICE, Nexo said the move provides a U.S.-compliant framework for its offerings. (Disclosure: Nexo is one of 22 investors in Decrypt.)

The products allow customers of the digital asset wealth platform to trade cryptocurrency, earn loyalty rewards, take on crypto-backed lines of credit, and accrue yield on digital assets on a fixed and flexible basis. Nexo has $11 billion in assets under management, according to the company.

In 2023, the SEC charged Nexo for failing to register the offer and sale of its retail crypto asset lending product, known as the Earn Interest Product, or EIP. Nexo agreed to a cease-and-desist order without admitting or denying that its EIP was an unregistered security.

Nexo began phasing out its products and services in the U.S. in 2022, and on Monday, the company said its return “follows a period of deliberate recalibration and reflects the company’s long-term commitment to operating in markets where regulatory frameworks are evolving.”

Eleanor Genova, head of communications at Nexo, told Decrypt that Nexo complied with the SEC’s order in 2023, which included discontinuing its EIP. The company’s relaunch is not a continuation of that discontinued product, she added.

The offering is structured through partnerships with licensed U.S. service providers, Genova said, with certain services being made available through a third-party investment advisor.

Last month, California Department of Financial Protection found that Nexo issued more than 5,000 unlicensed loans to residents, levying a $500,000 fine against the firm. At the time, a Nexo spokesperson told Decrypt that the fine did not reflect the company’s current operations.

The SEC’s settlement with Nexo came amid a larger sweep against crypto lending platforms, mirroring enforcement actions against collapsed firms like BlockFi and Genesis. Contagion among crypto lenders rocked the industry in 2022 before Sam Bankman-Fried’s cryptocurrency exchange FTX caved in.

Coinbase was among industry leaders that stopped issuing Bitcoin-backed loans in 2023. Since then, it’s moved onto a decentralized format, offering crypto-backed loans using decentralized finance application Morpho. Last week, liquidations on the platform flared as crypto prices plunged.

When Nexo signaled that it was returning to U.S. markets in April, the announcement took place at an event featuring keynote addresses from President Donald Trump and Gila Gamliel, Israel’s minister of innovation, science, and technology.

“I think crypto is the future of finance,” Trump said. “We see the opportunity for the financial sector and want to ensure we bring that back to the U.S.”