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• Vauld said it was facing financial challenges due to volatile market conditions following the collapse of TerraUSD
• Nexo to acquire Vauld and reorganize its future operations to accelerate its more profound presence in Asia
Crypto lender Nexo on Tuesday said it plans to buy rival Vauld, the latest news of consolidation in the digital currency industry as prices tumble.
London-based Nexo said it would buy up to 100% of Vauld and “reorganize its future operations with the aim to accelerate its deeper presence in Asia.”
Nexo neither said how much it plans to pay for Vauld nor when the deal would close.
Vauld, which is based in Singapore, on Monday, said that it had suspended withdrawals for its more than 800,000 customers.
Nexo aims to “provide immediate assistance and alleviate withdrawal limitations put in place on Vauld’s platform,” the company said in a press release.
In a blog post on Monday, Vauld said it was facing “financial challenges” due to volatile market conditions, “the financial difficulties of our key business partners inevitably affecting us”, and customers having withdrawn more than $197.7 million since June 12.
Crypto lending, which acts as unregulated banks for the crypto world by offering high returns, and lending digital tokens to borrowers, has boomed over the last two years.
The lending business has run aground in recent months following a crash in cryptocurrency prices and the collapse of major token TerraUSD in May.
US lender Celsius Network, which had more than $11 billion in assets, stopped allowing withdrawals and transfers in June, citing extreme market conditions, and hired restructuring consultants to advise on a possible bankruptcy filing.
Another lender, Voyager Capital, suspended withdrawals last week and issued a default notice to hedge fund Three Arrows Capital (3AC) for failing to pay its 15,250 bitcoin and 350 million USD Coin (USDC) loan.
Picture Credit: CoinCentral
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