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Nexo plans to buy fellow lender Vauld
July 06, 2022
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.
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