BlockFi and Nexo are highly competitive products offering crypto financial services such as savings accounts and loans. In addition to savings accounts and loans, they’re both looking to get into other product areas like debit cards and credit cards.
Nexo have been in the fintech business for more than 10 years before entering the blockchain industry, while BlockFi are relatively new. BlockFi were set up in 2017 and almost instantly backed by some of the industry’s leading investors and advisors, including the Winklevoss brothers at Gemini.
In this comparison, we take a much closer look at both companies to see which comes out on top.
What is it?
BlockFi is a leading saving and lending platform for the crypto industry. It was founded in 2017, it’s based in the US and it’s backed by some of the industry’s leading investors and influencers. They offer loans and savings accounts on GUSD, Ethereum, Bitcoin and Litecoin.
Nexo is a crypto loans and savings platform that allows you to borrow or earn interest on your crypto assets. It's developed by a fintech team who have been building similar products for the last 10 years. They offer savings accounts on a large range of crypto assets including most stablecoins.
What is unique about it?
BlockFi were one of the first to introduce crypto savings accounts and loans. They found instant success with a good product that offered very competitive interest rates.
Nexo's most unique characteristic is that it supports more than 45 fiat currencies and many cryptocurrencies. In addition to this, the team have been working together in the fintech industry for more than 10 years.
How safe is it?
BlockFi offers security measures like two-factor authentication on their site. In addition to this all their wallets are provided by Gemini Custody which is regulated in the US and provides insurance on all wallets.
Nexo offers two-factor authentication in their app. They also offer third-party custody from Bitgo. BitGo investors include Goldman Sachs and the platform is SOC 2 Type 2 certified. BitGo Custody carries $100 million USD in insurance protection.
Find out more?
While Nexo pay their interest compounded daily, BlockFi's rates are generally better. It's worth looking into which currencies you want to earn interest on, however, the fact that Nexo pay out in Nexo tokens can be frustrating for some. Nexo's native currency hasn't performed particularly well, so being paid in Bitcoin, or a stablecoin is a much better option. BlockFi allow you to do this.
We find the usability of BlockFi to be much better, even though it's missing a native mobile app. The team and backers behind BlockFi also trump those at Nexo.
Nexo's loan interest rates used to be considerably higher than BlockFi's, however, this has recently changed and they have some of the most competitive rates out there. While Nexo have become much more competitive in their rates, they still don't trump BlockFi and for this reason, we'd recommend going with BlockFi for your loan needs.