Nexo, a crypto loans company, states it will accept Telegram’s gram ICO token as collateral. However, the tokens are not yet available.
Once the tokens have been received after the first public sale of gram tokens on July 10 via the Liquid exchange platform, Nexo stated that it will enable clients to utilize the tokens as collateral for its planned credit card and instant credit lines.
The limited gram sale is the first to be opened for the general public. The sale will be made through Gram Asia, a Korean company asserting to be the biggest holder of gram token, which it got through multi-stage ICO last year. The token sale raised an astounding $1.7 billion in two phases – the highest secured through an ICO at the time. According to Liquid, Telegram is not associated with the upcoming gram sale.
The ICO funding is now being utilized to establish the Telegram Open Network (TON), an ambitious blockchain initiative that intends to decentralize multiple aspects of digital communication such as file sharing, browsing, and transactions.
The Liquid exchange specifies that gram tokens will be up for sale at $4 each. Customers can use U.S. dollars and the USDC stablecoin to buy the tokens.
However, it will take some time before grams are received and can be used as collateral for Nexo’s loans.
New holders of the tokens will have to wait for the TON launch, at which the tokens will be received in four stages over 18 months.
“If the mainnet launches, users would be able to claim their tokens at launch and immediately leverage them to borrow from Nexo, or to spend via our upcoming credit card,” Nexo said.
The representative said that the TON is set to launch in the third quarter of this year.
According to Nexo, should grams go witness a bigger public sale, the token has “the potential to become one of the largest cryptocurrencies by market cap.”
Nexo provides insured accounts that offer automated and “instant” approvals for loans in more than 45 fiat currencies, its website says. Users with crypto holdings can also earn “up to 8 percent” interest on their assets.
The company was established in April last year. TechCrunch founder Michael Arrington is an investor and advisor to the firm.