Crypto lender Nexo plans to buy fellow lender Vauld



(Corrects to say Nexo is based in London (not New Jersey), paragraph 2)

By Elizabeth Howcroft

LONDON, July 5 (Reuters) - Cryptocurrency lender Nexo plans to buy fellow lender Vauld, it said on Tuesday, the latest sign of consolidation in the digital currency industry as prices tumble.

Nexo, which is based in London, said it would buy up to 100% of Vauld and "reorganize its future operations with the aim to accelerate its deeper presence in Asia." It did not say when the deal would close.

Singapore-based Vauld said on Monday 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 statement said.

Nexo did not say how much it planned to pay for Vauld.

Acting as unregulated banks for the crypto world, crypto lenders take in deposits from retail investors, offering deposits as high as 20%, and lend digital tokens to borrowers.

Crypto lending has boomed over the last two years but has run aground in recent months following a crash in cryptocurrency prices and the collapse of major token TerraUSD in May.

U.S. lender Celsius, which had more than $11 billion in assets, stopped allowing customer withdrawals and transfers in June, citing extreme market conditions. Another lender, Voyager, suspended withdrawals last week.
Reporting by Elizabeth Howcroft, Editing by Louise Heavens

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.