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Nexio borrowers include institutional trading firms, market makers, arbitrage desks, and other professional counterparties seeking fixed-rate BTC-denominated credit for short- and medium-term strategies. These borrowers complete the KYC/KYB onboarding process with Nexio and already operate under regulatory oversight and manage large positions across established venues. Many of these borrowers also have high minimum facility requirements, meaning the capital they need must be sized for institutional deployment rather than small-ticket lending. Today, the strategies these borrowers run (basis trades, funding rate arbitrage, market making) already exist and generate real yield, but access to them is fragmented and typically gated by high minimums, bespoke legal structuring, and direct relationships. The result is that a large share of Bitcoin capital simply can’t participate. Nexio standardizes this into clean, allocatable facilities where capital can be deployed with defined terms and transparency, without the overhead of independently sourcing borrowers, conducting due diligence, and structuring each deal. Although some traditional BTC lending markets exist, they have several challenges, including:
  • Unverified borrowers: Counterparties are opaque, with limited KYC/KYB or legal enforcement.
  • Variable, unpredictable rates: Yields fluctuate with market conditions and platform risk.
  • Regulatory uncertainty: Many platforms lack standardized compliance or auditability.
  • High access barriers: Institutional borrowers require large facilities, and lenders lack a standardized way to fund them without direct relationships and custom legal work.
Nexio addresses this by combining borrower due diligence, legal documentation, managed custody arrangements, and ongoing monitoring into a single underwriting and servicing process. Each borrower is approved for a defined facility with its own terms, limits, and reporting requirements, while lenders choose exposure based on the specific borrower and facility they want to fund. BTC funding and repayment are handled through approved custody and settlement workflows rather than decentralized wallet logic or protocol-native contract execution.

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Step-by-Step Flow

There are five steps in Nexio’s borrower process, from onboarding to repayment. The following illustrates this flow:
  1. Onboarding and underwriting: Borrowers complete the institutional onboarding process with Nexio, provide financial and operational information, and undergo credit review.
  2. Documentation: Approved borrowers sign the relevant legal agreements, including facility terms, reporting obligations, and default provisions.
  3. Facility approval: Nexio sets the borrower’s limit, pricing, duration, and any covenants or structural protections applicable to that facility.
  4. BTC funding: Once the facility is approved and operational requirements are satisfied, BTC is disbursed through Nexio’s managed custody and settlement process.
  5. Servicing and repayment: Borrowers make scheduled interest payments and repay principal according to the agreed terms, while Nexio monitors compliance and reports performance to lenders.

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Example: Borrower Flow

Consider a high-credit borrower approved for a 90-day BTC facility with a fixed 7% rate. After that onboarding is complete, Nexio finalizes its credit review, completes the facility documents, and confirms the operating terms for the borrower. Once the borrower satisfies the funding conditions, Nexio arranges disbursement of 2 BTC through its approved custody and settlement workflow to the borrower’s designated settlement instructions. Throughout the loan term, the borrower makes scheduled coupon payments and provides any required reporting. At maturity, the borrower repays principal and outstanding interest, and Nexio records the repayment and updates lender reporting for that facility.