They can’t loan out without raising money, of course. So either they have to loan themselves with better terms, raise money through other means, or steadily process the loans facing a supply drought and customer loss. I could imagine that it would be technically legal for a certain % of the collateral to be sold, just like banks are not required to keep 100% of their customers cash in liquid form, but I have quite frankly no clue how this applies to nexo and crypto assets.
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