Defi

Morpho

DeFi

April

Nexo

Nexo has launched a zero-interest crypto lending product that allows Bitcoin and Ether holders to borrow against their assets through fixed-term loans.
According to a company <a href="https://www.businesswire.com/news/home/20260108785934/en/Nexo-Unveils-Zero-interest-Credit-with-0-APR-and-No-Fees" rel="noopener noreferrer nofollow" target="_blank">announcement</a>, the product, called&nbsp;Zero-interest Credit, offers fixed-term loans for users who hold Bitcoin (<a href="/bitcoin-price" rel="noopener noreferrer nofollow" target="_blank">BTC</a>) and ETH (<a href="/ethereum-price" rel="noopener noreferrer nofollow" target="_blank">ETH</a>), with repayment conditions set in advance. Loans are settled at maturity and can be repaid using either stablecoins or collateral, depending on market conditions.
The offering expands a structured lending model that had previously been available only through Nexo’s private and OTC channels, where it facilitated more than $140 million in borrowing during 2025, according to the company.
Borrowers choose the loan size and duration up front, with terms that prevent liquidation before maturity and define the repayment range. At the end of the term, loans can be settled using either stablecoins or collateral, with the option to renew under new terms.
Nexo is a crypto financial services company founded in 2018 that offers crypto-backed loans, trading and savings services to users across 150 jurisdictions.
In April 2025, the company said that it would <a href="https://cointelegraph.com/news/nexo-is-back-in-the-united-states-trump-jr-comments-on-the-event" rel="noopener noreferrer nofollow" target="_self">reenter the US market</a> after withdrawing in late 2022 and settling a case with the Securities and Exchange Commission for $45 million in early 2023.
Related: <a href="https://cointelegraph.com/news/babylon-raises-15m-from-a16z-crypto-to-unlock-bitcoin-for-staking-and-onchain-credit" rel="noopener noreferrer nofollow" target="_self">Babylon receives $15M from a16z Crypto to expand Bitcoin-native lending</a>
<h2 id="defi-lending-grew-in-2025">Defi lending grew in 2025</h2>
Crypto lending has evolved significantly since 2022, when companies such as Celsius and BlockFi were widely blamed for amplifying market contagion and deepening the fallout from the <a href="https://cointelegraph.com/news/ftx-2-year-repayment-delay-should-be-considered-a-win" rel="noopener noreferrer nofollow" target="_self">FTX collapse</a>.
In 2025, centralized lenders including Nexo, Ledn, Xapo Bank and <a href="https://cointelegraph.com/news/coinbase-bitcoin-backed-loans-morpho-defi" rel="noopener noreferrer nofollow" target="_self">Coinbase</a> expanded their <a href="https://cointelegraph.com/news/babylon-raises-15m-from-a16z-crypto-to-unlock-bitcoin-for-staking-and-onchain-credit" rel="noopener noreferrer nofollow" target="_self">crypto lending offerings</a> under more conservative, fully collateralized structures, while decentralized finance (DeFi) protocols also recorded strong growth.
According to DefiLlama <a href="https://defillama.com/protocols/lending" rel="noopener noreferrer nofollow" target="_blank">data</a>, DeFi lending products grew from about $48.15 billion in total value locked (TVL) on Jan. 1, 2025, to a peak of $91.98 billion on Oct. 7, 2025.
<figure>
 <img alt="Nexo to offer zero-interest crypto lending for BTC and ETH holders" src="https://s3.cointelegraph.com/uploads/2026-01/019b9f6f-e6e7-7fe8-ad21-103d7267d6b1.png" title="">
 <figcaption style="text-align: center;">
 DeFi lending total value locked. Source: <a href="https://defillama.com/protocols/lending" rel="noopener noreferrer nofollow" target="_blank">DefiLlama</a>
 </figcaption>
</figure>
Although the market trended lower following the Oct. 10 <a href="https://cointelegraph.com/news/trump100-tariffs-china-bitcoin-plummets-110k" rel="noopener noreferrer nofollow" target="_self">crypto liquidation event</a>, activity stabilized in November and total value locked (TVL) currently stands at around $66 billion.
The DeFi lending market is led by Aave, with more than $22 billion in outstanding loans backed by over $55 billion in deposited assets, according to DefiLlama data.
Morpho ranks second, supporting roughly $3.6 billion in outstanding loans backed by about $10 billion in supplied liquidity. Magazine: <a href="https://cointelegraph.com/magazine/how-crypto-laws-changed-2025-further-2026/" rel="noopener noreferrer nofollow" target="_self">How crypto laws changed in 2025 — and how they’ll change in 2026</a>

Nexo to offer zero-interest crypto lending for BTC and ETH holders

Table of Contents

Cointelegraph

Other articles published on Jan 8, 2026

Join our free newsletter for daily crypto updates!