It was a turbulent week in the cryptocurrency space as another centralized firm — this time FTX — collapsed.
That event brought custody and asset security into sharp focus. Yesterday I wrote an analysis of how funds flowed off exchanges as investors panicked and rushed for the exits.
Against this backdrop, it’s noteworthy that Nexo, a crypto lending platform, has launched a non-custodial smart wallet. Currently in pre-launch, the product is a self-custodied option for sending, receiving, storing and swapping digital assets and operates across five chains: Ethereum, Polygon, Binance Smart Chain, Fantom and Avalanche-C.
We interviewed the product owner, Elitsa Taskova, to get more insight into the announcement.
CoinJournal (CJ): Custody of crypto assets is an understandably hot topic after recent industry events. Do you think that concern will encourage adoption of this non-custodial wallet?
Elitsa Taskova (ET): Absolutely. Nexo Wallet has been in development since the beginning of the year. At Nexo we wanted to give clients the ability to choose the level of centralization or decentralization they prefer when managing their funds.
We are aiming high and building Nexo 360º — a comprehensive offering that includes everything someone might need to manage their money. Part of that package is a secure, user-friendly, non-custodial gateway to DeFi, along with the option to manage your digital identity without intermediaries.
CJ: It’s interesting that the wallet launched as a multi-chain product. How difficult was that to develop compared with, say, launching only on Ethereum?
ET: We began by supporting several EVM-compatible chains, which reduces initial complexity somewhat. We are, however, actively considering support for additional chains in future releases, including Bitcoin. We are also evaluating whether to offer a multi-chain bridge to make it easier for users to move assets between chains.
CJ: Nexo is also a centralized company, and many of your competitors have failed over the past year. Even if those failures aren’t related to Nexo, are you concerned that capital might leave the space entirely, harming Nexo’s reputation along with many other crypto firms?
ET: We believe capital alone does not make this industry valuable — it’s the potential for innovation and blockchain to solve inefficiencies across sectors, particularly finance, that creates real value. The industry has experienced several wake-up calls over the past year, and while recovery takes time, the response must be to do better, build more, and bring these innovations into everyday life.
High levels of fear have caused many users to reduce their crypto exposure, but historically once volatility subsides capital and participation return — as happened during earlier shocks, such as the initial COVID panic in early 2020. Meanwhile, we will continue building the necessary infrastructure.
CJ: How frustrating is it to see highly levered and poorly managed firms do so much damage to the space while you try to build and innovate?
ET: It is frustrating, but it hasn’t dampened our determination to keep building. If anything, it has reinforced our commitment to sustainable, compliant practices and products. Those failures have eroded trust in crypto and cast a shadow over lending and asset-management sectors in digital assets.
My colleagues and I empathize with the many retail users affected by recent shocks. At the same time, Nexo’s core business practices, risk management and sustainable model have proven resilient in the face of such turbulence.
CJ: Is it challenging to launch new products into a market when both the broader economy and the crypto industry are under stress?
ET: In times like these we must focus and continue building, otherwise short-term stressors can obscure long-term vision — and that’s an unhealthy way to create anything sustainable.
While participation in crypto can be dampened during severe downturns, that doesn’t eliminate the need or viability of products like Nexo Wallet. We are prepared to weather slower adoption in the short term if it means delivering something that outlasts the current market cycle and provides meaningful value to end users.