Nexo Completes Third Consecutive SOC 2 and SOC 3 Audits

Nexo, a digital assets wealth platform, is reinforcing institutional confidence in the crypto industry by completing its third consecutive SOC 2 Type 2 and SOC 3 Type 2 audits [1]. These assessments, conducted by A-Lign, a third-party compliance and cybersecurity firm, evaluate how effectively a company’s internal systems handle security, confidentiality, and privacy controls over an extended period. For Nexo, the audits represent more than a compliance requirement—they are part of a strategic effort to align with the due diligence expectations of banks, hedge funds, and financial regulators [1].

SOC 2 Type 2 audits focus on the effectiveness of internal controls over time, ensuring that security protocols, data handling, and privacy measures function as intended in practice. In contrast, SOC 3 reports are publicly shareable and used to communicate trustworthiness without exposing sensitive operational details. These frameworks, developed by the AICPA, are commonly used in fintech and cloud computing, positioning them as a bridge for digital asset platforms seeking institutional validation [1].

The audit process for Nexo included evaluations of access control, encryption, data retention, incident response, and continuous system monitoring [1]. These are critical components for enterprise clients and institutional investors, who typically scrutinize such infrastructure before committing capital. Kaloyan Yankulov, Nexo’s Head of Security, has emphasized the need for institutional-grade frameworks in a space historically plagued by self-regulation failures [1].

What sets Nexo apart is the consistency of its compliance efforts. Completing these audits for three consecutive years demonstrates a commitment to sustained operational maturity. Unlike one-off compliance checks, SOC 2 Type 2 audits involve a multi-month evaluation window, ensuring that internal controls are continuously monitored and assessed against established benchmarks [1]. Maintaining such standards requires these controls to be embedded in both company culture and technological infrastructure, rather than applied as an afterthought [1].

In a crypto industry recalibrating toward greater oversight, Nexo’s approach aligns with the emerging trend of institutional investors demanding clearer risk management, data governance, and operational resilience. While SOC audits are not mandatory, they serve as proactive compliance signals—particularly when engaging with large-scale clients or financial partners. In a climate of heightened regulatory focus, third-party certifications create an objective layer of trust, reducing perceived risks for clients, regulators, and partners [1].

However, it is important to note that SOC audits are not a guarantee of security. They are indicators of operational readiness and risk awareness, not shields against breaches. For retail users, the impact may be less tangible, but for institutional players managing billions, such certifications are foundational. Without them, platforms like Nexo would struggle to gain traction in traditional finance environments [1].

Nexo’s repeated SOC certifications are more than internal achievements—they are public declarations of a company betting on compliance as a competitive advantage. In an industry still grappling with product-market fit and regulatory uncertainty, Nexo’s long-term strategy is to build infrastructure-grade crypto systems that can coexist with traditional banking and custody models [1]. As digital assets gain traction in mainstream finance, platforms that prioritize transparency and third-party validation are more likely to secure a seat at the table [1].

Sources:

[1] How Nexo Is Building Institutional-Grade Confidence in Crypto (https://hackernoon.com/how-nexo-is-building-institutional-grade-confidence-in-crypto)