- For lenders: Earn a predictable, BTC-denominated yield secured through Bitcoin-native custody without rehypothecation. Credit exposure remains but is limited to known, KYC/KYB borrowers and is governed by on-chain covenants, segregated Series vaults, and signed legal agreements. Custody is distributed across threshold signers rather than centralized, meaning vault operations require multi-party authorization.
- For borrowers: Access native BTC liquidity at fixed rates under clear legal agreements and transparent, on-chain covenant monitoring.
Gaps in Current Bitcoin Credit Infrastructure
To understand why Nexio’s model matters, it’s useful to contrast it with existing BTC lending infrastructure. Existing BTC lending markets rely on variable-rate exchange margin and opaque CeFi desks, where terms change with utilization, collateral is often commingled or rehypothecated, and lenders have limited visibility into borrower risk. Nexio replaces this with a fixed-rate structure, ring-fenced Series, and custody models that meet institutional standards. BTC remains in segregated vaults with enforceable contracts, on-chain telemetry, and optional support for qualified custodians when preferred. Nexio’s design creates predictable, auditable, and budgetable BTC credit that institutions can rely on. The table below highlights Nexio’s key advantages:| Existing BTC Lending Solutions | Nexio |
|---|---|
| Opaque custody and commingled collateral | Segregated Series-level custody. Each Series holds its own BTC, either in a Taproot vault with threshold authorization or in a segregated prime-custody sub-account. No rehypothecation. |
| Generic, one-size-fits-all lending | Borrower-specific Series with defined strategy, term, collateral tier, and covenants. One borrower, one vault, one set of fixed terms. |
| Variable rates driven by exchange utilization | Fixed APR at draw, informed by strategy economics and credit spreads, so lenders and borrowers can plan in BTC with certainty. |
| Limited secondary liquidity | uBTC receipts enable transferability and integration in secondary markets for hedging or early exits. |
| Manual or delayed reporting | Real-time on-chain telemetry for utilization, collateral, coupon flows, and Series performance. |
| No structured diversification | Programmatic diversification via the Master Vault across vetted borrowers and strategies. |
Custody Models
Nexio supports two custody models. These include:- Native Bitcoin custody (default): Every Series holds BTC in a dedicated Taproot Vault using threshold Schnorr signatures. The vault looks like a single-sig on-chain but requires an m-of-n operator quorum to move funds (Custody, Validation, Governance). This structure prevents rehypothecation and keeps each Series isolated. uBTC receipts are minted/burned only after the Bitcoin transaction is proof-gated (confirmed on the BTC network), keeping token supply 1:1 with coins verifiably in custody.
- Prime-custodian flow (optional): If a borrower or lender prefers a qualified custodian (e.g., BitGo), Nexio supports a segregated, whitelisted sub-account model. Deposits, draws, and repayments still route through the Series’ control logic and execute only after on-chain compliance attestations and proof-gated events, preserving the same no-rehypothecation and ring-fencing guarantees.
Architecture
At a high level, Nexio connects users, programmable vaults, and Bitcoin’s base layer through a coordinated three-tier system.
- User Layer: Retail users, BTC treasuries, and institutional funds interact with Nexio through deposits, redemptions, and reporting interfaces. Deposits flow into individual Series or the Master Vault, both secured by Taproot-based custody. Each Series corresponds to a single borrower with its own dedicated Taproot vault, while the Master Vault allocates capital across multiple Series to provide diversified exposure.
- Protocol Layer: The core logic of Nexio. Series contracts define individual yield strategies with fixed terms and ring-fenced risk. The Master Vault allocates capital across borrower-specific Series and aggregates their performance, while Network Validators coordinate deposits, redemptions, and yield distribution with on-chain verifiability.
- Infrastructure Layer: The foundation securing all activity. Taproot vaults enable native Bitcoin custody with programmable spending conditions. The Bitcoin network anchors final settlement, while the Nexio Coordination Layer links protocol logic to custody, orchestrating proofs, validations, and data flow across the system.