Nexo, headquartered in London, is in advanced discussions to buy troubled Singapore crypto platform Vauld, which reportedly owes US$402 million to lenders
Nexo, the major crypto lender is in talks to invest in or acquire several companies in Asia, said Tatiana Metodieva, the company’s head of corporate finance and investments.
These companies range from distressed ones and those facing difficulties for various reasons to businesses that are “in good standing,” she adds.
Expanding the company’s footprint in Asia or allowing the crypto lender to move into new verticals within crypto are the aims of these potential deals. Asia forms 20 per cent of the company’s user base of five million, who mostly come from Southeast Asia.
Nexo, headquartered in London, is in advanced discussions to buy troubled Singapore crypto platform Vauld, which reportedly owes US$402 million to lenders.
Nexo has never faced liquidity issues and is “well-capitalized and well-positoned to consolidate the crypto lending space,” said Metodieva.
Nexo focuses on “safer” over-collateralized loans, unlike embattled competitors Celsius and BlockFi, which means borrowers pledge a larger amount of funds than what they’re taking out.
Asia is home to a fair share of struggling crypto lenders like Zipmex and Hodlnaut.
Referring to no firm in particular, Metodieva says Nexo can help “restructure the operations of the distressed companies” to bring them back on track. It can also assist in mitigating liquidity issues and bank runs.
The lender, which has over 650 employees, also has a VC arm called Nexo Ventures, which has committed US$150 million of Nexo’s money to minority investments in start-ups.
On the regulatory front, co-founder Kalin Metodiev says Nexo was caught off-guard when eight US state regulators acted against it over unauthorized product offerings.
“We were a little surprised by this news being thrown out there in public, you know, because this isn’t a process that just started this week,” he said, adding that the firm is engaging regulators like the US Security and Exchange Commission.
On a related note, Nexo has bought a stake in a holding firm that owns US-based Summit National Bank, which allows its users to use the bank to open accounts, borrow money, and more.
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