Crypto yield with Nexo: how it works and the risks

Nexo offers to pay interest on your bitcoin, ether or stablecoins at rates that can exceed 10% a year. That is far more than a savings account. The gap has an explanation, and a price: understanding where the yield comes from, what ‘up to’ means and what happens if the platform fails.

Nexo in brief

Nexo is a crypto-asset platform founded in 2018. It lets you buy and exchange crypto, borrow using crypto as collateral, and earn interest on the crypto you entrust to it. That last service is what concerns us here.

There are two options:

• Flexible savings: interest paid daily, withdrawals at any time.
• Fixed-term savings: a higher rate in exchange for a lock-up of 1, 3, 6 or 12 months. During that time, the funds cannot be withdrawn or used as collateral.

Where the yield comes from

A yield never comes out of nowhere. When you entrust your crypto to Nexo, the platform can use it to generate its own revenue, notably by lending to other clients. Its credit lines were advertised in early 2026 at rates of about 11 to 18% depending on the borrower's loyalty tier. Nexo passes part of what it collects back to you.

This is exactly what the SEC, the US securities regulator, noted in January 2023: according to the SEC, Nexo used deposited crypto to generate revenue and fund the interest paid. The SEC considered this product an unregistered security. Nexo agreed to pay $45 million in total to federal and state authorities, without admitting or denying the findings, and stopped offering the product to Americans.

The advertised rates, and what they assume

In October 2026, Nexo's website showed these maximum flexible savings rates:

These rates are maximums. To get them, you generally have to meet several conditions at once:

• The highest loyalty tier (Platinum), which requires holding at least 10% of your Nexo portfolio in NEXO tokens. The intermediate tiers require 1% (Silver) and 5% (Gold).
• Agreeing to be paid in NEXO tokens rather than in the crypto deposited, for a rate bonus.
• A balance above $5,000 to access the loyalty programme.
• Locking up your funds on a fixed term for the highest rates.

Nexo states that rates can change at any time and vary by region. Always check the conditions shown in the app for your country.

Regulatory status in Europe

Since 1 July 2026, a crypto platform must be authorised under the European MiCA regulation to solicit clients in the European Union. According to tracking by the EU MiCA website (October 2026), Nexo does not appear in the ESMA register: its application, filed according to several sources in February 2026 with the Bulgarian financial regulator, was still pending.

In the meantime, Nexo says it serves clients in the European Economic Area through two partners authorised by the German regulator BaFin: Tangany for custody and DLT Finance for exchange.

Another episode worth knowing: in January 2023, Bulgarian prosecutors raided Nexo's offices as part of an investigation into money laundering and tax fraud. The investigation was closed in December 2023 for lack of evidence, and Nexo has since been claiming about $3 billion from Bulgaria before an international arbitration tribunal.

The risks, one by one

Counterparty risk

Your crypto is no longer in your wallet: you hold a claim on the platform. In 2022, several platforms offering the same kind of service, such as Celsius, Voyager or BlockFi, went bankrupt and froze their clients' withdrawals. Nexo came through that period, but this precedent shows what happens when a crypto lending platform collapses.

NEXO token risk

To get the best rates, you have to buy and hold NEXO tokens, whose price can swing sharply. A fall in the token can wipe out several years of extra interest. The calculator below shows this.

Price risk

A 5.5% rate on bitcoin is paid in bitcoin. If bitcoin loses 50%, you have earned 5.5% more bitcoins that are worth half as much in euros.

Stablecoin risk

The highest rates are on US dollar stablecoins. They expose you to the euro-dollar exchange rate, and to the soundness of the stablecoin issuer.

Regulatory risk

Rules change: a product available today can be modified, restricted or withdrawn in your country.

Taxation in Belgium

• Interest earned by lending your crypto is generally treated as investment income, taxed at 30%. As a foreign platform does not withhold the tax, you must declare it yourself.
• Capital gains from selling your crypto have, since 2026, fallen under the 10% tax above the annual exemption (see crypto and stocks).
• An account with a foreign platform must in principle be declared to the National Bank's Central Point of Contact.
• Since 2026, the DAC8 directive requires platforms to pass their European clients' data to the tax authorities.

The exact classification may depend on your situation, and other countries tax crypto interest differently: have your return checked by an accountant.

If you decide to try

1. Only put in a small share of your wealth, whose total loss would remain bearable.
2. Compare the net rate, after 30% tax, with a savings account or a bond ETF without platform risk.
3. Be wary of the Platinum tier: it makes you buy a volatile token to gain a few points of interest.
4. Start with flexible savings, so you can withdraw quickly.
5. Check the platform's MiCA status in the ESMA register before each new deposit.
6. Keep a record of the interest received for your tax return.

The same questions apply to any platform promising a yield on your crypto. If the rate is guaranteed, very high or impossible to explain, reread the warning signs of financial scams.

Where to find these services

• NexoThe official website (no referral link)
• KrakenMiCA-authorised platform that also offers staking
• CoinbaseMiCA-authorised platform that also offers staking
• BitvavoMiCA-authorised platform that also offers staking
• ESMA MiCA registerTo check that a crypto platform is authorised in the EU

Links provided for information, with no partnership. Always check a provider's terms and authorisation before committing.

This article is educational and is not personal investment, tax or legal advice. Figures change: check them with the sources cited or a licensed professional before deciding. Read the full disclaimer.