Nexo Announces Stablecoin Service Updates for EEA Clients

Nexo has announced updates to its stablecoin product features for clients in the European Economic Area (EEA) as part of its commitment to compliance with the latest EU regulatory guidance. These changes, set to take effect in two phases starting March 10 and March 31, 2025, aim to align with the evolving industry landscape and ensure a seamless user experience.

Phase One: Changes Effective March 10, 2025

Beginning March 10, Nexo will implement several changes to its stablecoin services. Clients will be able to swap USDT, USDP, DAI, and TUSD for USDC at market rates without incurring additional costs on the Nexo Exchange. This adjustment facilitates asset transitions for those interested in earning interest with USDC. However, these swaps will not offer crypto cashback.

Additionally, new fixed-term savings and auto-renewals for USDT, DAI, USDP, TUSD, and PAXG will be discontinued. Existing terms will remain unaffected, allowing clients to continue earning interest until maturity. New Dual Investment strategies with USDT will also be unavailable, though active subscriptions will continue until they mature. Clients can still buy, hold, top up, and use these assets for loan repayments, and Nexo Card holders can make purchases in Debit Mode.

Phase Two: Changes Effective March 31, 2025

From March 31, spot trading pairs involving USDT, USDP, TUSD, DAI, and PAXG will transition to a sell-only mode, allowing conversions only to other assets. Swapping these stablecoins for USDC will continue at market rates without additional costs. Nexo will also introduce multi-asset collateral for futures trading, enabling the use of both USDT and USDC in Futures Wallets.

Scheduled recurring buys and target price swaps for acquiring the affected assets will be canceled. This includes recurring purchases using available balances, card payments, or swaps. Furthermore, new loans in USDT will be discontinued, and flexible savings for USDT, USDP, TUSD, DAI, and PAXG will end, with the last daily interest payout on March 31. Existing fixed-term savings will continue to accrue interest until maturity.

Top-ups and withdrawals for all mentioned stablecoins will remain available, and other product functionalities for stablecoins in the EEA will remain unchanged. These updates are designed to ensure a smooth digital asset experience on Nexo, as detailed here.

Why This Matters: Impact, Industry Trends & Expert Insights

Nexo has announced updates to its stablecoin services for EEA clients, aligning with EU regulatory changes and enhancing user experience through phased implementations.

According to a Coingate report, the stablecoin market in the EU is experiencing significant growth, driven by regulatory clarity under the EU’s Markets in Crypto-Assets (MiCA) regulation. This trend is evident in Nexo’s service updates, which aim to comply with these regulatory standards and adapt to the evolving market landscape.

A Hogan Lovells publication highlights that MiCA regulation has significantly impacted stablecoin services by enforcing strict reserve requirements and authorizations. This regulatory framework supports Nexo’s adjustments, ensuring their stablecoin offerings remain compliant and secure for EEA clients.

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