The Rise of Zero-Risk Crypto Lending: How Nexo's Zero-interest Credit is Reshaping Institutional and Retail Borrowing in 2026

The crypto lending landscape is undergoing a seismic shift, driven by the emergence of structured, institutional-grade solutions that prioritize predictability and risk mitigation. At the forefront of this transformation is Nexo, whose Zero-interest Credit (ZiC) product has redefined the parameters of crypto-backed borrowing. By eliminating interest costs, liquidation risks, and operational complexity, Nexo's innovation is not only attracting retail investors but also reshaping institutional participation in the $73.59 billion crypto-collateralized lending market. As we enter 2026, the implications of this evolution are profound, signaling a maturation of the crypto finance ecosystem.

The Structural Innovation of Zero-interest Credit

Nexo's ZiC product allows Bitcoin and Ethereum holders to access liquidity at 0% annual interest with no fees, while retaining full ownership of their collateral. Unlike traditional crypto loans, which are subject to volatile loan-to-value (LTV) ratios and forced liquidations, ZiC introduces a fixed-term structure with predefined price ranges-Minimum and Maximum Repayment Prices-that ensure borrowers can repay without mid-term surprises. This design eliminates the need for constant monitoring of market conditions, a critical pain point for both retail and institutional users.

The product's one-tap renewal feature further enhances its utility, enabling users to extend borrowing terms without unwinding or re-establishing loans. For institutions, this translates to seamless capital access for operational expenses, hedging, or strategic investments, while retail users benefit from tax efficiency and liquidity without selling assets. By December 31, 2025, Nexo had already facilitated over $140 million in ZiC liquidity, a figure that doubled in 2026 as adoption accelerated.

Institutional Adoption and Market Growth

Institutional demand for structured crypto lending solutions has surged, driven by Nexo's emphasis on transparency and risk control. The broader crypto-collateralized lending market expanded by 38.5% in Q3 2025, reaching $73.59 billion-a figure that remained stable into 2026 as Nexo solidified its position as the second-largest crypto lender. This growth is underpinned by Nexo's AI-driven portfolio management tools, launched in Q4 2025, which optimize asset allocation using predictive analytics. Such tools appeal to institutional investors seeking sophisticated digital asset management solutions, particularly as regulatory clarity improves.

Nexo's strategic partnerships and product diversification have further fueled institutional adoption. For instance, the expansion of its Dual-mode Nexo Mastercard into Latin America and Southeast Asia contributed to a 72% year-over-year increase in borrowing activity in the UK/EEA region. Additionally, the introduction of multi-asset collateral for Futures contracts with up to 100x leverage has attracted traders and investors seeking amplified exposure. These initiatives align with a broader industry trend: institutions are increasingly viewing crypto lending as a core component of their capital strategies.

Retail Borrowing: Accessibility and Engagement

While institutional adoption is critical, Nexo's retail-focused innovations have democratized access to crypto-backed credit. The Nexo Card, now available in over 150 countries, has become a gateway for retail users to leverage their crypto holdings for everyday spending. Aggressive marketing campaigns, such as seasonal cashback promotions, have driven card adoption and transaction volumes, particularly in emerging markets.

The zero-interest promotional offer-active until December 31, 2025-also played a pivotal role in onboarding retail users. By allowing borrowers to access 0% interest for 45 days, Nexo demonstrated the viability of its model while educating users on the benefits of structured lending. This approach has positioned Nexo as a bridge between traditional finance and crypto, offering retail investors a familiar yet innovative borrowing experience.

Future Outlook: A New Era for Crypto Lending

Looking ahead, Nexo's roadmap underscores its ambition to dominate the structured crypto lending space. The expansion of Fixed-term Savings and Dual Investment products will likely attract both institutional and retail clients seeking diversified borrowing and lending options. Meanwhile, the integration of AI-driven analytics into portfolio management is expected to enhance collateral efficiency and risk assessment, further solidifying Nexo's institutional-grade reputation.

As the crypto market matures, the demand for zero-risk, client-controlled lending solutions will only intensify. Nexo's ZiC product has already set a new benchmark, proving that crypto-backed credit can be as reliable and accessible as traditional alternatives. For investors, this evolution represents not just a shift in borrowing paradigms but a fundamental reimagining of capital access in the digital age.