Crypto lender Nexo plans to buy fellow lender Vauld

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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)