Nexo Updates Stablecoin Services in EEA

Nexo has announced an update to its stablecoin services for users in the European Economic Area (EEA), aligning with new European Union regulations.

The changes will affect trading, savings, and lending for various stablecoins, including USDT, DAI, USDP, TUSD, and PAXG.

The updates will be implemented in two phases: the first phase starts on March 10, 2025, and the second on March 31, 2025. Below are detailed changes for Nexo users.

Nexo News: No-Cost Conversion Between Stablecoins

Starting March 10, 2025, users can exchange USDT, USDP, DAI, and TUSD for USDC at the market rate without extra fees. This option will be offered on the Nexo Exchange platform, through the following pairs:

• USDT/USDC
• USDP/USDC
• DAI/USDC
• TUSD/USDC

The goal is to ease the transition to USDC, which remains an option for earning interest, although these exchanges do not provide cashback in cryptocurrencies.

From March 10, 2025, USDT, DAI, USDP, TUSD, and PAXG will no longer accept new deposits in Fixed-term Savings or for automatic renewal. Current fixed deposits will continue to earn interest until they mature. After this, users can convert to other currencies to keep generating returns.

Nexo will also stop accepting new Dual Investment strategies with USDT in the EEA, but existing positions will remain active until expiration. USDC will be available for future trades.

Despite the changes, users in the EEA can still:
– Purchase, hold, and deposit the affected stablecoins
– Use them to repay loans
– Make payments with the Nexo Card in debit mode

Changes Effective March 31, 2025

Starting March 31, 2025, no new purchases of USDT, USDP, TUSD, DAI, or PAXG will be allowed in trading. These pairs will switch to sell-only mode, allowing only conversions into other cryptocurrencies but preventing new purchases.

The exchange of USDT, USDP, DAI, and TUSD for USDC will remain at market rate with no fees.

Nexo will introduce multi-asset collateral for Futures trading, letting users utilize both USDT and USDC as collateral in their Futures wallets.

From this date, the following will be discontinued:
– All recurring purchases (including those using available balances or payment cards)
– Target price swaps for the affected stablecoins
– Automatic purchases of stablecoins with euro (EURx) or other cryptocurrencies

No new loans in USDT will be allowed, but lending remains unrestricted for other stablecoins.

Flexible Savings for some stablecoins will cease on March 31, 2025, with the last daily interest payment made on this date. Existing fixed deposits will continue to receive interest until expiration, and depositing/withdrawing affected stablecoins will remain unrestricted.

Objectives and Impact for Nexo Users

These changes reflect the evolution of the crypto sector and Nexo’s alignment with European regulations on stablecoins. The company aims to ensure a smooth and secure user experience while allowing users to manage their digital assets.

Nexo highlights that these innovations represent progress towards better regulatory compliance. Users are encouraged to prepare for the changes and evaluate available conversion options to enhance their portfolios.

The company will actively monitor the regulatory landscape and inform clients promptly of any further updates.