Nexo Launches Zero-Interest Crypto Lending for BTC and ETH Holders

Nexo, a Swiss-based digital asset financial services company, has launched a new product called Zero-interest Credit (ZiC), which allows Bitcoin and Ethereum holders to borrow against their assets with 0% annual interest and no fees. The offering expands Nexo's lending capabilities to a broader audience of crypto investors and traders.

This product joins Nexo’s existing credit offerings and is designed to provide borrowers with a predefined repayment structure, reducing the risk of premature liquidation. The loan terms are fixed, and borrowers can choose to repay using stablecoins or their original collateral at maturity according to product details.

The product is part of a broader recovery in the crypto lending market, which has grown significantly since the collapse of major platforms like Celsius and BlockFi in 2022. In 2025, DeFi and centralized lending models have gained traction, with DeFiLlama reporting total value locked (TVL) in DeFi lending protocols reaching $91.98 billion on October 7, 2025.

Why Did This Happen?

Crypto-backed lending has evolved from high-risk, unsecured models to fully collateralized structures that offer more transparency and safety. Nexo’s new zero-interest credit product is a response to market demand for more stable and predictable borrowing options.

The company previously offered similar products through its private and over-the-counter (OTC) channels, where it facilitated more than $140 million in borrowing during 2025. The expansion to a broader audience reflects the company's confidence in its risk management and compliance frameworks.

How Does the Product Work?

The Zero-interest Credit product allows borrowers to take out fixed-term loans with no interest charges during the loan period. Borrowers choose the loan amount, duration, and repayment method in advance, which includes repayment with either stablecoins or the original collateral at maturity according to product documentation.

The product also includes a renewal option, enabling borrowers to extend the loan term under updated conditions without having to close and reopen the position. This flexibility is particularly attractive to long-term crypto holders, investors, and businesses that want to maintain exposure to BTC and ETH while accessing liquidity according to market analysis.

The loan structure also includes a Minimum Repayment Price and a Maximum Repayment Price. These terms ensure that borrowers know exactly what they will owe at maturity, regardless of market price fluctuations during the loan period according to product specifications.

What Are Analysts Watching Next?

Analysts are closely monitoring how the product will affect the broader crypto lending landscape. Nexo’s zero-interest model is unique in the industry, as most crypto lenders charge interest rates between 5% and 15% annually. By offering a 0% APR with no fees, Nexo is setting a new benchmark for crypto-backed lending .

The move is also part of Nexo’s broader strategy to expand its Web3 footprint. In late 2025, the company announced the launch of a $150 million in-house venture fund targeting DeFi, blockchain gaming, and NFTs. This suggests that Nexo is not only focused on improving its lending offerings but also on fostering innovation in the wider Web3 ecosystem .

As the crypto lending market continues to grow, the focus is shifting from high-interest, high-risk models to more structured, transparent, and secure lending solutions. Nexo’s new product aligns with this trend and could influence the direction of the industry in the coming months .

Investors and traders are now watching to see how other lenders respond to Nexo’s zero-interest offering. If the product proves successful, it could trigger a wave of similar offerings from other platforms, potentially reshaping the competitive landscape in the crypto lending sector .