Cryptocurrency lender Nexo eyes acquisition of fellow lender Vauld

Cryptocurrency lender Nexo eyes acquisition of fellow lender Vauld

Nexo, the all-in-one cryptocurrency platform, is planning to take over fellow lender Vauld, a move that indication its attempts to strengthen its position in the digital currency industry which is extremely volatile at present.

Nexo seems to be interested in buying up to 100% of Vauld to boost its future operations which will allow the London-based crypto lender to proliferate its presence in the Asian market. The industry continues to wait for an official announcement of the acquisition from the respective parties.

Meanwhile, Singapore-based Vauld announced earlier this week that the platform has suspended withdrawals for more than 800,000 customers after reporting total withdrawals adding up to $200 million since June 12.  

With the anticipated takeover of Vauld, Nexo intends to provide immediate assistance and ease off some of the withdrawal limitations imposed on Vauld’s platform. However, Nexo has not revealed the proposition amount for a complete takeover of the platform.

In May, Darshan Bathija, CEO of Vauld, disclosed that the crypto platform had $1 billion under asset management.

Typically, crypto lenders act as unregulated banks that provide structure to the crypto world by taking deposits from retail investors with returns extending up to 20% and lending digital tokens to borrowers.

It is worth noting that the last couple of years have showcased significant growth in crypto lending, however, the industry has witnessed a tumultuous drop in recent months after cryptocurrency prices crashed dramatically and the major token TerraUSD collapsed in May.

As a result of the extreme market conditions, U.S lender Celsius, with more than $11 billion in assets, ceased withdrawals and transfers for its customers in June, whereas another lender Voyager stopped allowing withdrawals last week.

According to Vauld’s latest statement, the crypto lender is facing critical financial challenges owing to the constantly fluctuating market conditions, noting that the market scenario affects key business partners which ultimately affects the platform.

Source Credit: https://www.yahoo.com/news/crypto-lender-nexo-plans-buy-100801847.html