- For lenders: Earn fixed, BTC-denominated income by lending to vetted institutional borrowers under clear legal terms. Each borrower vault has its own rate, duration, and credit profile, so lenders can choose the exposure that fits their risk appetite. Borrower payment activity is visible on-chain, giving lenders an auditable record of how obligations are being serviced.
- For borrowers: Access BTC liquidity through structured loan facilities without needing to overcollateralize every position. Loans may be undercollateralized or fully uncollateralized, but borrowers remain contractually obligated to repay interest and principal under signed legal agreements.
How Nexio Works
Nexio organizes lending through borrower-specific vaults. Each vault corresponds to a single institutional borrower and a defined set of commercial terms. Those terms typically include:- A fixed interest rate
- A fixed loan duration
- A defined repayment schedule
- Legal agreements governing payment obligations, default handling, and lender protections
Why the Model Matters
Traditional BTC lending often leaves lenders exposed to changing rates, unclear custody arrangements, rehypothecation risk, and limited transparency around the borrower. Nexio replaces that with a more structured model built around identified counterparties, fixed commercial terms, segregated borrower vaults, professional custody, and auditable payment flows. The table below highlights Nexio’s key differences:| Existing BTC Lending Solutions | Nexio |
|---|---|
| Opaque borrower exposure | Institutional borrowers complete the Nexio onboarding review before access is granted, and each vault is tied to a specific borrower and term sheet. |
| Commingled capital across many activities | Borrower vaults are segregated so lenders can evaluate exposure on a borrower-by-borrower basis, without rehypothecation of funds. |
| Floating or unstable loan pricing | Loans are issued at fixed interest rates, with principal due at maturity. |
| Heavy reliance on overcollateralization | Nexio supports undercollateralized and, in some cases, uncollateralized lending backed by legal agreements and credit underwriting. |
| Informal operating processes | Lending activity is managed through documented workflows, a single institutional onboarding relationship with Nexio, enforceable borrower obligations, and transparent payment reporting. |
| Weak custody controls | BTC is held through trusted custody arrangements, including qualified custodians such as BitGo where appropriate. |
Custody
Custody is a core part of the Nexio model. Borrower vaults are administered through trusted custody arrangements designed to separate assets, control movements of BTC, prevent rehypothecation, and support institutional oversight. These arrangements can include:- Segregated borrower vaults: Each borrower facility is structured as its own vault with its own terms, balances, and operational controls.
- Qualified custodians: Nexio can work with trusted custodians such as BitGo to hold BTC and support secure settlement, reporting, and asset segregation.
- Controlled operations: Deposits, draws, interest payments, and repayments follow managed operational processes. Nexio exposes borrower payment activity on-chain so lenders can independently audit loan servicing.
Architecture
At a high level, Nexio brings together lenders, borrower-specific vaults, and institutional custody through a coordinated three-layer operating model. These include:- Client Layer: Lenders, BTC treasuries, and institutional allocators access Nexio through a one-time onboarding process, then use reporting and borrower vault selection to choose among facilities based on borrower profile, interest rate, and duration.
- Operations Layer: Nexio manages underwriting, legal documentation, payment workflows, and borrower monitoring. This is where vault terms are defined, lenders are matched to facilities, and repayments are tracked through the life of each loan.
- Custody Layer: Trusted custodians and controlled settlement workflows hold and move BTC under approved operating procedures. This layer is designed to protect asset segregation and support secure loan funding and repayment.