Nexo, one of the world's leading regulated digital assets institutions, has just announced a $100 million buyback program that will allow the company to repurchase its native NEXO Token in the open market periodically, according to the press release seen by iHodl.
The buyback program is expected to commence immediately and will probably be completed in about 6 months, depending on the conditions of the market. However, the project's board of directors might determine a consecutive buyback once the current program is completed.
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The company will use the repurchased tokens to make investments in strategic targets via token mergers with applicable vesting schemes to ensure token holder interests.
However, the project also intends to use part of the repurchased tokens to make daily interest payouts to clients who choose to receive their yields in NEXO Tokens.
Antoni Trenchev, co-founder and managing partner at Nexo, said on the buyback program:
"The buy-back program announced today reflects our strong financial position and underscores our ability to simultaneously upgrade our products, maintain a strong balance sheet and invest in alternative growth strategies, all while providing significant utility and growth to NEXO Token holders. As Nexo’s market share increases and the industry matures, we’ll continue to seek acquisitions and token mergers to cement our leadership position in the crypto lending ecosystem."