Nexo, a leading digital assets wealth platform, has announced a new strategic partnership with Sphere, a company specializing in cross-border payments, based on the information shared with Finbold on Thursday, February 27.
The partnership is expected to facilitate international business payments with fast, cost-effective, and regulatory-compliant blockchain settlement solutions.
With Sphere’s scalable infrastructure and Nexo’s digital asset expertise, the two partners expect to reduce settlement times from days to mere hours, streamline treasury management, and provide businesses with almost instantaneous currency conversion.
Nexo-Sphere partnership
By shortening settlement times, Sphere helps businesses reduce foreign exchange (Forex) risk and improve liquidity.
Sphere likewise promises to reduce reliance on intermediaries in regions like Mexico, Brazil, and Argentina, where stablecoin adoption is steadily growing.
Arnold Lee, chief executive officer (CEO) at Sphere, commented on the importance of the partnership in Latin American regions:
With Latin American economies contending with considerable inflation and currency volatility, our alliance with Nexo stands to be a real game-changer. By joining forces, we can deliver a secure, streamlined environment for everything from everyday B2B transactions to larger-scale settlements — significantly cutting the time and overhead businesses face.
Thanks to Sphere’s application programming interface (API), on the other hand, businesses, Fintech companies, and more traditional financial institutions can enjoy faster, more cost-effective international payments.
As such, the collaboration further enhances Nexo’s suite of financial services, which now includes personal USD accounts, crypto loans, and interest-earning products.
Modernizing business payments
Many businesses face a number of issues when it comes to international transactions, most notably the need for third-party intermediaries, high fees, and long settlement times.
In an attempt to address these problems, stablecoins have emerged as a powerful alternative, and they now account for up to 75% of all on-chain transactions.
For example, the total market cap of USD-pegged stablecoins surpassed the $ 200 billion mark in January of this year.
In these market conditions, Nexo and Sphere will work on implementing and gradually expanding blockchain in select markets to eventually benefit businesses of all sizes.
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