FG Nexus Inc. (NASDAQ:FGF) has entered into a master digital currency loan agreement, allowing it to borrow digital assets and securing an initial $10 million loan with specific collateral and fee terms.
The company announced on October 29, 2025, that it signed a master digital currency loan agreement (MLA) with an unnamed lender. Under the MLA, FG Nexus may request loans of digital currency or cash, with final terms memorialized in a loan term sheet. The agreement requires the company to provide collateral for all loans, which are subject to margin calls and fees as detailed in the respective loan term sheet.
In conjunction with the MLA, FG Nexus entered into an account control agreement (ACA) on October 29, 2025, with a custodian and the lender. This ACA ensures the custodian acknowledges the MLA and recognizes the lender's potential security interest in certain assets held by FG Nexus.
On October 30, 2025, FG Nexus and the lender executed a loan term sheet for an 'October Loan' valued at $10,000,000. This loan carries a Borrow Fee of 7.9%. The October Loan is an evergreen facility, meaning it is not due until 30 calendar days following the lender's delivery of a recall request. The collateral for this loan is Staked ETH, with an Initial Collateral Level set at 170% and a Margin Call Rate of 140%. The term sheet also outlines additional terms concerning post-default hedging costs and remedies in case of default.
