London-based cryptocurrency lender Nexo announced on Tuesday that it intends to acquire rival lender Vauld, the latest indication of consolidation in the sector as prices fall.
London-based Nexo announced that it would purchase all of Vauld up to a maximum of 100 percent and “reorganise its ongoing development with the aim to accelerate its deeper presence in Asia.” It did not specify a closing date for the deal.
Vauld, a Singapore-based company, announced on Monday that it had stopped allowing withdrawals from its 800,000+ customers.
According to the statement, Nexo aims to “provide immediate assistance and reduce withdrawal limitations imposed on Vauld’s platform.”
Nexo remained mum regarding the price it needed to pay for Vauld.
Crypto lenders receive funds from individual investors, offering funds as high as 20%, and lend borrowers digital tokens in a manner similar to that of unregulated banks in the conventional banking system.
Crypto lending has exploded over the past two years, but has stalled recently as a result of a decline in cryptocurrency prices and the May collapse of TerraUSD, a significant token.
Due to severe market conditions, U.S. lender Celsius, which had more than $11 billion in assets, stopped allowing customer withdrawals and transfers in June. Voyager, another lender, halted withdrawals last week.
