Leading cryptocurrency lender Nexo has offered to buy distressed competitor Vauld, which halted operations in the face of financial difficulties. The proposal comes after the Singapore-based company said it was exploring restructuring options.
On the backdrop of this latest sign of stress in the industry, Nexo noted in a statement that it’s now up to “capable and well-capitalized entities to aid the sector.” In case of a satisfactory outcome of the initiated due diligence process, the lender plans to acquire up to 100% of Vauld, reorganize operations, and seek “deeper presence in Asia.”
“We sympathize with all affected by the drastic market downturn. However, difficult times always teach us the importance of business model viability and prudent risk management. It is inevitable that the industry leaders will navigate out of the current crisis,” commented Tatiana Metodieva, Nexo’s head of Corporate Finance and Investments.
Nexo assured it “aims to provide immediate assistance and alleviate withdrawal limitations put in place on Vauld’s platform,” which affected more than 800,000 customers. At the same time, the lender is planning for the future, including by exploring options to provide Vauld’s customers with a wider range of retail and institutional products and improved services.
Vauld’s CEO Darshan Bathija was quoted as stating that “Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions.”
Do you expect to see more consolidation in the crypto industry and the lending sector in particular? Tell us in the comments section below.